ZAGREB, May 27 (Hina) - The Croatian National Sabor's House of Representatives on Thursday continued its 40th session with a debate on a bill on the privatisation of the Croatian Telecommunications (HT). The session is also attended
by HT and Croatian Post (HP) union representatives, and an advisor on privatisation with the Dresdner Kleinwort Benson company, which is participating in the first privatisation phase. The bill, proposed by the Government, was presented by Finance Minister Borislav Skegro. Skegro stressed one of the basic principles of the privatisation process was also for the HT, as the leading telecommunications company, to stay one of the foundations of national infrastructure, but also to become one of the generators of development of the overall economy. The HT continues to be a Croatian company after its privatisation, he added. According to the bill, 30 per cent of HT sh
ZAGREB, May 27 (Hina) - The Croatian National Sabor's House of
Representatives on Thursday continued its 40th session with a
debate on a bill on the privatisation of the Croatian
Telecommunications (HT).
The session is also attended by HT and Croatian Post (HP) union
representatives, and an advisor on privatisation with the Dresdner
Kleinwort Benson company, which is participating in the first
privatisation phase.
The bill, proposed by the Government, was presented by Finance
Minister Borislav Skegro. Skegro stressed one of the basic
principles of the privatisation process was also for the HT, as the
leading telecommunications company, to stay one of the foundations
of national infrastructure, but also to become one of the
generators of development of the overall economy.
The HT continues to be a Croatian company after its privatisation,
he added.
According to the bill, 30 per cent of HT shares would remain
permanently owned by the state, while dividends from this portion
would be directed into the pension fund. Five per cent of shares
would be offered to former and current HT and HP employees, under
more favourable terms than for other citizens, whereas another five
per cent would be allocated to Croatian war veterans free of charge.
The strategic investor would be granted 25 per cent + 1 share, while
the remaining 35 per cent (- 1 share) would be offered to Croatian
citizens in the second privatisation phase. It would be ideal for
all 35 per cent to be bought by Croatian citizens, Skegro said.
Telecommunications are of strategic importance in every state,
Skegro said, stressing the bill protected the basic national
interests. These interests are also protected through permanent
state ownership over 30 per cent of the shares.
The strategic investor, with his 25 per cent + 1 share, has a
minority that can veto the adoption of decisions, but the state (the
Sabor), with 30 per cent of shares, can prevent the adoption of any
decision which would be contrary to Croatia's interests.
One of the basic reasons for the privatisation of the HT is to
prepare the company for competition and market liberalisation,
which begins in the year 2003. The bill is expected to secure better
and cheaper services, the arrival of foreign capital and direct
foreign investments, as well as the development of the domestic
capital market.
(hina) rml