The Slovak government has mandated the economics ministry to negotiate with Deutsche Telekom (DT) over the potential sale of its shares in Slovak Telekom.
The ministry, in cooperation with the national property fund, has until the end of June to present…
The Slovak government has mandated the economics ministry to negotiate with Deutsche Telekom (DT) over the potential sale of its shares in Slovak Telekom.
The ministry, in cooperation with the national property fund, has until the end of June to present a proposal on what the state should do with the shares, a ministry spokesperson said.
The economics ministry has a 34% stake in Slovak Telekom, while the national property fund has a 15% stake. DT is the controlling shareholder with a 51% stake. The state attempted to sell its shares in Slovakia’s largest telco in 2011, but halted plans in October after the centre-right coalition government collapsed.
A DT spokesperson declined to comment on news of the potential sale, citing company policy, but noted that, if and when the Slovak government makes a final decision on the matter, it will communicate its reaction.
A preliminary analysis of the potential sale carried out on the state’s behalf said that, while the state has a good relationship with DT as the majority shareholder, it has little direct influence over the company’s direction or management.
The analysis stated that a sale could be carried out directly, via the capital markets, or via a dual-track approach combining the two.
A spokesperson for the economics minister Tomas Malatinsky stressed that the mandate to begin negotiations is a preliminary step in the process and that it was too early to comment on the valuation of shares.
