News 14. 11. 2018

First phase of NLB privatisation successfully closed by SSH

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Today's listing of Shares of Nova Ljubljanska banka d.d. (NLB) on Ljubljana Stock Exchange (LJSE) and on London Stock Exchange saw a successful closure by SSH of the first step of NLB's privatisation process, as stipulated by the State Assets Management Strategy adopted by the Slovenian Parliament in 2015.

The Republic of Slovenia has thereby also satisfied the first set of commitments given to the European Commission with regard to the NLB's privatisation, as a result of the state aid provided to NLB in 2013 (as amended in 2018).

11,818,181 NLB Shares have been sold in the IPO process, representing a 59.1% stake in NLB, at the price of EUR 51.50 per Share. Additional 1,181,819 NLB Shares, representing a 5.9% stake in NLB, is dedicated for the Overallotment Option used for the stabilisation of the price. If no stabilisation activities will be carried out in the next 30 days, this means that a 65% stake in NLB is sold.

The proceeds from the sale amounted to EUR 609 million, excluding the potential proceeds from the sale of Stabilisation Shares which may amount to approximately EUR 61 million

Since 2013, when EUR 1,551 million was invested by the Republic of Slovenia into NLB, the State's Budget has received income arising from NLB dividends in the total amount of EUR 378 million, so that proceeds received together with dividends paid out have thus amounted to almost EUR 1 billion. When adding this amount to the value of ownership interest retained by the Republic of Slovenia in NLB and future dividends to arise from its stake, it is clear that the investment by the State into the bank, totalling EUR 1,551 million, will be fully repaid.

The Republic of Slovenia remains the largest individual shareholder of NLB, and the NLB Group remains an independent, Slovenian financial institution which will continue to support the development of the Slovenian economy and to represent an important proportion of the portfolio of SSH capital assets.

SSH will proceed with the NLB privatisation process in accordance with the State Assets Management Strategy and in line with the commitments given by the Republic of Slovenia to the European Commission in connection with the NLB’s privatisation. The remaining proportion of Shares of up to 75% minus one Share will be sold by the end of 2019. In this manner, SSH will fulfil its duty imposed by the Parliament in 2015.

Lidia Glavina, the President of the SSH's Management Board, said: "We are pleased that in spite of demanding conditions on the markets, good quality international investors have decided to purchase NLB Shares. We believe that the new  shareholder structure will provide for greater competitiveness and contribute to further development of NLB. The Republic of Slovenia remains the largest individual shareholder of NLB, and the NLB Group remains an independent, Slovenian financial institution which will continue to support the development of the Slovenian economy while the Republic of Slovenia remains an important shareholder. SSH supports the development strategy set by NLB and expects NLB to continue generating value and returns for its shareholders in the future.

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