Germany’s ACP Axos Capital and US-based investor Najafi Companies made a €277 million bid for 75% of the company in April last year, but the Kosovan government has now said that the price is too low.
Kosovan Prime Minister, Hashim Thaci – as well as a number of members of parliament – have claimed that the deal undervalues Kosovo’s most profitable company.
The country was originally set to retain 25% of PTK and the deadline for approval of the deal expired on December 30, 2013.
In a statement, Kosovo’s economy ministry said: “Facing this situation we are unable to proceed with the signing of the contract for the sale of shares of the PTK and the commission has decided to cancel the privatisation of the 75% of the shares.”
ACP Axos Capital and Najafi Companies had initially said they would sue the government if the sale failed to complete.
Thaci has lost a significant number of votes in parliament in recent months, and Reuters believes that cancelling the sale will jeopardise Kosovo’s attractiveness to foreign investors.
The country previously attempted to sell PTK in 2011, but this fell through after charges were filed against a number of senior officials at the company.
No further plans for PTK have been revealed and there was no immediate reaction from the German and US consortium.
