The Slovak government aims to complete the sale of its 49% stake in Slovak Telekom by the end of June, according to the country’s economy minister.
Pavol Pavlis told media that, in preparation for the IPO, the state will transfer its direct 34% stake…
The Slovak government aims to complete the sale of its 49% stake in Slovak Telekom by the end of June, according to the country’s economy minister.
Pavol Pavlis told media that, in preparation for the IPO, the state will transfer its direct 34% stake in the incumbent to the National Property Fund, which has a 15% holding, by 8 April. A ministry spokesperson confirmed the plans but said further details will not be disclosed until May.
Last July, the National Property Fund signed a contract with Citigroup and JP Morgan to sell the state’s minority stake in Slovak Telekom. While the banks have pursued a dual-track process, the government has maintained that it would prefer an IPO, but noted that the final decision will depend on market conditions.
Pavlis said shares will be offered on both the Slovak and London stock exchanges.
Earlier last year, the government signed an MoU with Deutsche Telekom, which has a 51% stake in the telco, and Slovak Telekom on the planned sale which states they will cooperate with one another to ensure the process is completed in a “timely” manner.
The German incumbent, which also has assets in other parts of Central and Eastern Europe, retains a right of first refusal on a direct sale. A spokesperson for the company recently told TelecomFinance that it “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.
