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Slovenian Sovereign Holding to Start Preparations for the Initial Public Offering of NLB

Ljubljana, 12 May 2016 - Slovenian Sovereign Holding (hereinafter: "SSH") has received the Feasibility Study from its financial adviser Deutsche Bank (hereinafter referred to as: "DB") in relation to NLB’s privatisation process. Based on the findings of the Study and on the basis of the feedback from selected institutional investors met as part of the process, an initial public offering (hereinafter referred to as: “IPO”) has been assessed as the most appropriate sale method for NLB.

 

After a two-day non-deal road-show in London with selected institutional investors, the feedback from those investors has been positive and points in favour of a successful listing compared to a trade sale of NLB shares to a strategic buyer or a financial investor.

 

As part of the IPO, NLB shares will be listed on the Ljubljana Stock Exchange (LJSE) with a parallel listing on an international stock exchange. The listing of NLB shares on LJSE will positively impact the development of the domestic capital market while the parallel listing on a recognised international stock exchange, which is significantly more liquid, will allow NLB to attract a wider international investor base, facilitate direct benchmarking with relevant peers, benefit from broader research analyst coverage and achieve other advantages of a major international stock exchange.

 

The financial adviser, Deutsche Bank, has also submitted recommendations in relation to NLB's corporate governance, future management remuneration policy and other proposals for appropriate preparation for the NLB sale. As a result, an investor friendly governance framework will be proposed by SSH for NLB to achieve a successful privatisation and to increase NLB's attractiveness for international investors as part of the IPO process.

 

Implementation of the Feasibility Study recommendations regarding the privatisation method does not require modifications of the State Assets Management Strategy. Yet, proposals for new provisions regarding concentration limits for other owners will be included by SSH within the scope of a comprehensive proposal of amendments to the State Assets Management Strategy, which, however, are not critical for the implementation of the NLB sale process.

 

The IPO is not expected to be launched before the fall of 2016 and it will take into consideration several factors, including market conditions. The preparatory activities for the launch of the sale process have started. SSH's goal is, together with the financial advisor, and in cooperation with NLB, to implement the sale process as effectively as possible by the end of 2017, in line with the commitment given by the Republic of Slovenia to the European Commission.