Vienna Stock Exchange acquires Ljubljana Stock Exchange

At the end of June the Vienna Stock Exchange acquired a stake of over 80 per cent in the Ljubljana Stock Exchange LJSE, so that it is now majority shareholder of the Ljubljana Stock Exchange

The sales contract was signed by Vienna Stock Exchange representatives in Ljubljana at the end of June. As stock exchange CEO Heinz Schaller made clear at a press conference in Ljubljana, the Vienna Stock Exchange had now acquired 81.01 per cent of the shares of the Ljubljana Stock Exchange. Schaller went on to confirm his interest in acquiring the remaining 19 per cent of the Ljubljana Stock Exchange. “We see our role as that of a long-term investor, and are not interested in maximizing short-term profits,” explained Schaller.

No comment on purchase price

According to Slovenian media reports, the Vienna Stock Exchange is reported to have offered 1,401 euros a share for the Ljubljana LJSE share package. This would equate to a purchase price of 37.6 million euros. Vienna Stock Exchange CEOs Heinrich Schaller and Michael Buhl declined to comment on this price speculation in Ljubljana.

Under scrutiny by Competition Commission

The purchase must first be approved by the Slovenian Competition Commission, which is currently scrutinizing it. The takeover is expected to be concluded in two months’ time.

Further privatizations

The new Vienna majority shareholders intend to significantly expand the volume of business on the Ljubljana Stock Exchange. They have plans to improve both the range of products offered and the liquidity of the stock exchange in Ljubljana, and products such as certificates are also to be introduced. CEO Heinrich Schaller emphasized that he sees “ample potential” for an increase in liquidity. To this purpose it would also be necessary to privatize further Slovenian enterprises, and talks with the Slovenian government were already planned.

Vienna Stock Exchange goes East

By acquiring a stake in Ljubljana Stock Exchange, the Vienna Stock Exchange is now joint owner of two Eastern European stock exchanges: apart from Ljubljana, it also has an interest in the Budapest Stock Exchange. The exchange also has cooperation agreements with the stock exchanges in Bucharest, Sarajevo and Banja Luka.

Representatives of the Vienna Stock Exchange believe that this increased involvement in Eastern Europe will have a positive impact on economic development in the region. Experience has shown that privatizations also have a positive effect on capital market development, said Schaller. Private enterprises will also be increasingly encouraged to go public. The Vienna Stock Exchange was also interested in further takeovers in Eastern Europe, though there were no concrete plans at present.