Slovakia has shortlisted Citigroup and JP Morgan to advise on the sale of the state’s 49% stake in Slovak Telekom.
The National Property Fund, which is overseeing the sale, aims to complete contractual negotiations with both banks by the end of May, a…
Slovakia has shortlisted Citigroup and JP Morgan to advise on the sale of the state’s 49% stake in Slovak Telekom.
The National Property Fund, which is overseeing the sale, aims to complete contractual negotiations with both banks by the end of May, a fund spokesperson said. The government aims to complete the sale by the end of the year, she added.
The government has signed a memorandum of understanding with the incumbent’s majority shareholder, Deutsche Telekom, on the planned sale. In February, the state said it would follow a dual-track process, launching IPO and direct sale processes in tandem. An IPO is the state’s preferred option, but it has said the final decision will depend on market conditions.
The government has since approved a draft amendment to privatisation laws, set to come into force on 1 July, which would allow for the sale of shares on the stock exchange. At present, only other forms of privatisation, such as direct sales and public auctions, are permissible.
The finance ministry anticipates that the sale will raise the equivalent of 1.3% of GDP in 2015, according to its draft budget estimates for 2015 to 2017. The ministry estimates the nominal GDP in 2015 will total €77.8bn (US$106.76bn), meaning it aims to reap about €1.01bn (US$1.29bn) from the sale.
Under the MoU with Deutsche Telekom, the parties, which also include Slovak Telekom, agreed to provide each other with “reasonable cooperation” to ensure the terms of the document are satisfied in a “timely” manner. These include selecting advisers, securing necessary corporate approvals and undertaking due diligence of the telco.
The German incumbent has a right of first refusal with respect to the sale.
