ZAGREB, Oct 25 (Hina) - Croatian Prime Minister Ivica Racan and Deutsche Telekom (DT) Board President Ron Sommer, signed documents in the Croatian government building on Thursday, which ended the process of the selling of additional
16 percent of Croatian Telecom (HT) shares for EUR500 million, and making DT the owner of a total of 51 percent of HT shares. Racan stressed this was the biggest government's privatisation project to date, and described the sale of the 16 percent of HT shares to DT as a great success. In time of global crisis and investment stagnation, one of the world's leading telecommunication companies, DT, is investing EUR500 million in Croatia's economy. This is a great acknowledgement to Croatia but also a real confirmation of its overall stability including legislation, economy and security, Racan said. DT board president said the increase of DT's ow
ZAGREB, Oct 25 (Hina) - Croatian Prime Minister Ivica Racan and
Deutsche Telekom (DT) Board President Ron Sommer, signed documents
in the Croatian government building on Thursday, which ended the
process of the selling of additional 16 percent of Croatian Telecom
(HT) shares for EUR500 million, and making DT the owner of a total of
51 percent of HT shares.
Racan stressed this was the biggest government's privatisation
project to date, and described the sale of the 16 percent of HT
shares to DT as a great success.
In time of global crisis and investment stagnation, one of the
world's leading telecommunication companies, DT, is investing
EUR500 million in Croatia's economy. This is a great
acknowledgement to Croatia but also a real confirmation of its
overall stability including legislation, economy and security,
Racan said.
DT board president said the increase of DT's ownership in HT was an
important event for DT, adding the German company was now able to
actively participate in HT's progress.
Sommer announced that DT and HT would invest over EUR700 million in
the company by 2004. He said about 300 new jobs would be created and
additional training would be organised for HT employees.
HT board president, Ivica Mudrinic, stressed that the finalised
transactions are a key step in the development of HT, which would
still remain a Croatian company, only now incorporated in the
global DT family.
Racan and Sommer signed a statement in the Croatian government on a
transaction of the 16 percent of the shares of HT to DT, a statement
on EUR500 million payment, and a statement from the book of shares
which shows DT as the owner of 51 percent of the HT's shares.
In October 1999, DT bought 35 percent of HT's shares, and has now
purchased additional 16 percent. The remaining 49 percent of shares
is owned by the Republic of Croatia. Prime Minister Racan told
journalists that Croatia would allot seven percent of its shares to
Croatian Homeland War veterans, seven percent would be sold under
more favourable conditions to present and former HT employees, and
21 percent would be offered for public bidding. He also said that
EUR500 million for the 16 percent of HT shares was a revenue for the
state budget for 2001.
Some 50 union officials of the Croatian Post and Telecommunications
Trade Union (HPT) protested against HT's share sale.
A group of unionist dressed in black marched to the sound of drums
from the city's centre to the government building carrying a wreath
with HT sash, a long black band and a casket with HT's logo.
The HTP union believes that Croatia will suffer immeasurable
economic and social consequences because of HT's sale.
(hina) np sb