BRATISLAVA, January 19, (WEBNOVINY) — Economy Minister Juraj Miskov (SaS) said on Wednesday that can imagine that the state sells it entire stake in Slovak Telekom. The government controls 34 percent in the company through the Ministry of Economy and 15 percent through the privatization agency, the National Property Fund (FNM). “We at the Economy Ministry can imagine that the 34-percent stake, which the state holds in Slovak Telekom through the Economy Ministry, would be denationalized,” he said following the regular Cabinet’s session.
The National Property Fund, too, considers the sale of the 15-percent stake in the company a reasonable move. “The sale of the stake in the company represents the most rational alternative from the FNM’s point of view. As for the telecommunications’ market development, in general, further growth in the value of the state’s and FNM’s stakes in the company cannot be expected. Likewise, a positive development of return, thus also of expected dividends, is unlikely. The FNM and the Economy Ministry, as minority stockholders, do not have a real impact on the company’s development pursuant to fundamental documents,” the fund writes in a report acknowledged by the ministers on Wednesday. The FNM claims that the most beneficial way to sell the stake is on the capital market.
According to Miskov, potential privatization of Slovak Telekom would have to be confirmed by an economic feasibility analysis. „The material is to enable comparison of dividend receipt in the context of the telecommunications market development. It may turn out that it is more advantageous for the state to sell these shares, and that it will get more [through the sale] than if it receives dividends in the future. But this should come from the economic feasibility analysis, upon which we have agreed at the session,” Miskov said. The material is to be ready before late February. The minister was unable to outline the potential sale of Slovak Telekom’s shares. “If the political decision is made, another material on the sale of this stake will be drafted that will analyze privatization options,” added Miskov.
The Cabinet discussed the potential sale of some state-run companies on Wednesday. Ministers reviewed a material of the National Property Fund (FNM) as well as a material drawn up by the Ministry of Economy, where both institutions outlined operation of companies with state’s participating interest as well as proposal for their potential privatization. Both materials are only informative so far and discussion on potential privatization could be opened in upcoming months. No decision to privatize or not to privatize has been made, underscored Miskov. Prime Minister Iveta Radicova has assured that the Cabinet has just acknowledged the concerned reports, evaluating the condition of companies with state’s participation. According to Radicova, the Cabinet will never privatize strategic companies.
The strongest opposition party SMER-SD has labeled the sale of the most valuable property nonsense. It is absolute nonsense to sell heating utilities that make a profit. As soon as they are privatized, heat prices will instantly soar. We reject the sale of strategic property and such property that brings in money for the state,” responded SMER-SD leader Robert Fico.
SITA