Slovakia launches sale of its stake in Slovak Telekom

Slovakia has officially launched the sale of its 49-percent stake in telecommunications company Slovak Telekom via an initial public offering (IPO) announced at a joint press conference by the Slovak economy ministry and the National Property Fund on Tuesday.

The price of one share is 17.70 to 23.60 euros (about 19 to 25.20 U.S. dollars). The yield from the sale may therefore reach between 750 million and 1 billion euros. The state's 49-percent stake is equivalent to over 42.3 million shares. The offer will be available on the Bratislava and London stock exchanges.

Head of the National Property Fund, Branislav Bacik, emphasized that 10 percent of the overall amount of stock would be made available for purchase for individuals and legal entities residing in Slovakia. They will be able to buy between 10 to 423 shares and will be provided a discount of up to 5 percent. These groups will be able to purchase the shares between April 22 and May 5. Institutional investors, for their part, will be able to purchase the shares between April 21 May 6.

"There's no need for the state to keep the stake in the Slovak Telekom any longer, considering that now there are several operators on the market and a regulatory authority is in place, and the monopoly position of Slovak Telekom on the telecommunications market is over," a ministry spokesperson said, adding that the yield obtained from the sale would be used to boost the state's position in electricity utility Slovenske Elektrarne. Endit