A spokesperson for the Slovak parliament has denied a report that it has approved government plans to sell its 49% stake in Slovak Telekom.
A recent Reuters report stated, without citing sources, that the parliamentary approval paved the way for the…
A spokesperson for the Slovak parliament has denied a report that it has approved government plans to sell its 49% stake in Slovak Telekom.
A recent Reuters report stated, without citing sources, that the parliamentary approval paved the way for the government to sell its shares either via direct sale or initial public offering.
However, a spokesperson for the parliament, the National Council of the Slovak Republic, said it has not approved the sale, adding that it does not have the authority to do so.
“Such a power belongs exclusively to the government of the Slovak Republic,” she said.
“The date when this matter will be submitted to the government for its final approval has not been set yet.”
However, she noted that the government is continuing to prepare for the sale via IPO.
Last July, the National Property Fund signed a contract with Citigroup and JP Morgan to sell the state’s minority stake after Deutsche Telekom passed on the opportunity to boost its 51% holding.
While the banks were to pursue a dual-track process, the state has said it would prefer an IPO, although the final decision will depend on market conditions.
Earlier in the year, the government signed a memorandum of understanding with Deutsche Telekom and Slovak Telekom on the planned sale which says the parties will provide each other with “reasonable cooperation” to ensure the terms of the document are met in a “timely” manner. These include securing the necessary approvals and completing due diligence on the incumbent telco.
The German incumbent still has a right of first refusal on a direct sale. A Deutsche Telekom spokesperson said the company “considers its responsibility with regard to Slovak Telekom to be that of a long-term strategic partner”, but declined to comment further.
According to the finance ministry’s draft budget estimates for 2015 to 2017, the government aims to raise about €1.01bn from the sale.
The state attempted to sell its shares in Slovak Telekom in 2011, but halted plans in October that year after the centre-right coalition government collapsed.
