The agreement was signed by the state-owned funds KAD and SOD, reinsurer Sava Re and insurer Zavarovalnica Triglav, but several other shareholders joined in with letters of intent, meaning that the buyer will be able to acquire more than 75% of Telekom stock, SOD said on Friday.

The sale will be organised by a financial consultant, which will be picked among 15 specialists solicited by SOD with letters that it sent out today. The selection of consultant is to be completed by the end of October.

"SOD will strive to conduct the privatisation procedures responsibly and transparently...maximising the proceeds as well as other key elements that will allow Telekom to develop in the long term," the company said in a press release.

Telekom is one of 15 companies being put up for sale in what has been billed as the first round of privatisation undertaken to help balance the country's public finances.

It is also by far the biggest on the list, with a 75% stake worth over EUR 530m at current market price. However, according to law the buyer will also have to issue a takeover bid for the remaining shares.