The transaction is expected to be completed next month, the company announced in a filing with the Ljubljana Stock Exchange.

The government of Gibraltar had already held 50% of the company so it had a pre-emptive right in the purchase of the share.

The offloading of the stake in what is Gibraltar's leading telecommunications provider is in line with Telekom Slovenije's annual business plan for 2014 and strategic business plan by 2018.

The Slovenian telco acquired the stake in Gibtelecom for EUR 36.8m from US company Verizon International in 2007.

Telekom Slovenije is one of the 15 companies approved for privatisation.