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Sale of Kommunalkredit Still in Limbo

Denationalization of Kommunalkredit not yet completed. The Republic of Austria would have had until the end of March to privatize Kommunalkredit which was nationalized by force. However, the measures were not carried out according to plan. Just before the deadline, the federal state has asked Brussels for a prolongation again, as reported by Wirtschaftsblatt. Adolf Wala, CEO of Fimbag the state-owned enterprise which accompanies the Austrian Finance Ministry during the selling process, explains that the Finance Ministry has placed a request in time.   The “good part” of Kommunalkredit Austria AG, which had to be nationalized by force, was supposed to be sold by the end of 2012. However, it did not work as planned because the offers of the bidders were legally too complex, according to announcements made earlier. This is why the Finance Ministry had seeked for a prolongation of three months which has actually been granted by the EU Commission. However, this timeframe is over now and yet no results show.   The bank was provided with € 250m in capital by the state. Experts estimate proceeds of the sale of € 125m. It is still unclear how long the federal state will have until it has to put Kommunalkredit on the market successfully. Wala explains that the state has not proposed a time limit but he reckons that the EU will decide about the matter in the next few weeks and that the sale will be carried out this year. There are no changes in the number of bidders. According to reports, there are four offers. However, Wala describes them as to complex to assess them from all angles. Among the bidders is the Austrian Kontrollbank (OeKB) and private equity firm Apollo Global Management from New York. Source: https://www.friedlnews.com/article/austria-sale-of-kommunalkredit-still-in-limbo

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