Slovakia has approved a draft amendment to the country’s privatisation laws which would enable the government to sell its shares in Slovak Telekom on the stock exchange.
The changes, proposed by the economy ministry, are set to come into force on 1…
Slovakia has approved a draft amendment to the country’s privatisation laws which would enable the government to sell its shares in Slovak Telekom on the stock exchange.
The changes, proposed by the economy ministry, are set to come into force on 1 July.
Economy minister Thomas Malatinsky said the aim of the bill is to enable the state and national property fund (FNM) to sell shares via IPO, noting that only other forms of privatisation, such as direct sales and public auctions, are currently permissible.
In February, the government published its memorandum of understanding with Slovak Telekom’s other major shareholder, Deutsche Telekom (DT), on the planned sale of its 49% stake in the incumbent.
The government intends to follow a dual-track process, launching IPO and direct sale procedures in tandem. An IPO is the government’s preferred option, but it said previously the final decision would depend on market conditions.
Under the MoU, 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. Commenting on the signing of the MoU in February, a company spokesperson said it “preserves all of its rights as per the current shareholder agreement”.
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.
