Skipti hf. today made an offer for the Slovenian telecom company Telekom Slovenije. Current plans call for the sale by the State of a 49.13% share in the company in this round to a core investor, who will subsequently be required to make a take-over bid to other shareholders, with the exception of the State of Slovenia, which intends to retain a 25% share. The total share in question therefore amounts to 75% of Telekom Slovenije. Skipti’s offer for Telekom Slovenije is subject to all normal reservations and confidentiality under an agreement with the government of Slovenia.

The Executive Committee on Privatisation of the Slovenian government met today to discuss the offers and announced after the meeting that three parties had submitted bids. The bidders, in addition to Skipti, were the Hungarian company Magyar Telekom, which is owned by Deutsche Telekom, and the investment funds Bain Capital and Axos Capital, who submitted a joint offer. The conclusion of the Committee was that all three parties have now been invited to submit new offers before next 15 January. At that time, the Committee will meet again and announce their conclusion.

Telekom Slovenije is a leading telecommunications company in Slovenia, in addition to its growing business activities in neighbouring countries. The company employs a staff of approximately 4,400 employees. The company had revenues in the first three quarters of 2007 amounting to a total of EUR 590 million, or ISK 54 billion, with earnings before taxes of EUR 102 million, or approximately ISK 9.4 billion.