Pristina re-launches privatisation of Kosovo Telecom

By bne IntelliNews January 22, 2019

The Kosovan government decided on January 22 to re-launch the procedure for the privatisation of Kosovo Telecom.

Kosovo canceled the sale of Kosovo Telecom, formerly known as Post and Telecommunications of Kosovo (PTK), in 2013 after failing to win parliamentary support for the deal.

With the aim of privatising the company, the government set up a commission led by the minister of economic development and composed of the finance minister, trade minister, infrastructure minister and minister of labour that will recommend the successful bidder in the privatisation process, the government said in the statement.

In May 2018, Kosovo won an arbitration case against German company ACP Axos Capital, which had asked for €400mn in compensation for the cancelled privatisation of Kosovo Telecom.

This legal victory opened the way for the indebted Kosovo Telecom to be restructured and for the government to relaunch its privatisation, which was halted as the authorities awaited the US arbitration court’s decision.

ACP Axos Capital filed a lawsuit against the Kosovan government after the failure to win parliamentary approval to sell 75% of Kosovo Telecom to the German company for €277mn in 2013.

Once the most profitable company in the country, Kosovo Telecom came close to bankruptcy with accumulated debts of €60mn. It has been in debt since 2015 due to bad management and rising competition from the second-largest operator, IPKO, owned by Telekom Slovenije.

Related Articles

Kosovo’s Constitutional Court opens way for new government

Kosovo’s Constitutional Court ruled late on May 28 that a new government can be formed without the need for new elections, sparking outrage in the Vetevendosje party that won the October elections ... more

Kosovo’s PM self-isolates after being in contact with suspected coronavirus case

Kosovo’s outgoing Prime Minister Albin Kurti announced on May 11 that he will stay in self-isolation after coming into contact with a person suspected of having coronavirus (COVID-19). In a ... more

Human Rights Watch accuses Trump administration of arranging ouster of Kosovan PM

Human Rights Watch’s executive director Kenneth Roth has condemned the US administration for arranging the ousting of Kosovo’s Prime Minister Albin Kurti, and for favouring President Hashim Thaci ... more