ZAGREB, July 22 (Hina) - The potential strategic investors in the Croatian Telecommunications (HT) - Deutsche Telekom, Sweden's Telia, in conjunction with Norway's Telenor (the two companies are moving toward a merger), and Austria
Telekom - should submit their non-binding offers by July 23, a Croatian Government spokesman in charge of HT's privatisation, Damir Ostovic, said on Thursday. The final deadline for submitting the offers is September 30. Following a debate which lasted several months and the speculation about the sale of the HT, whose earnings should cover the needs of this year's budget, the Croatian National Sabor on June 11 adopted a law on the privatisation of the HT thus opening the process of privatisation of the first public, profit-earning company in Croatia. The companies which showed interest in participating in HT's privatisation were Deutsche T
ZAGREB, July 22 (Hina) - The potential strategic investors in the
Croatian Telecommunications (HT) - Deutsche Telekom, Sweden's
Telia, in conjunction with Norway's Telenor (the two companies are
moving toward a merger), and Austria Telekom - should submit their
non-binding offers by July 23, a Croatian Government spokesman in
charge of HT's privatisation, Damir Ostovic, said on Thursday.
The final deadline for submitting the offers is September 30.
Following a debate which lasted several months and the speculation
about the sale of the HT, whose earnings should cover the needs of
this year's budget, the Croatian National Sabor on June 11 adopted a
law on the privatisation of the HT thus opening the process of
privatisation of the first public, profit-earning company in
Croatia.
The companies which showed interest in participating in HT's
privatisation were Deutsche Telekom, Telia, Austria Telekom, and
the Greek OTE, which gave up the bidding early in the start.
In order to protect its strategic interests, the state will keep 30
per cent of HT shares thus securing a control package of shares,
whose dividends will be directed into the pension fund.
Seven per cent of shares will be offered under favourable terms to
former and current HT and Croatian Post (HP) employees; another
seven per cent will be given free of charge to Croatian soldiers and
20 per cent will be offered in a public bid. The strategic investor
will be offered at least 25 per cent + one share.
According to the Croatian Government's advisor on privatisation,
the company Dresdner Kleinwort Benson, the value of one fourth of
the HT amounts to between US$600 million and one billion.
Of the companies interested in the privatisation of the HT,
Deutsche Telekom is the largest. With the overall income of more
than DM30 billion, Deutsche Telekom is the largest
telecommunications company in Europe and the third largest in the
world.
Sweden's Telia is the leading telecommunications company in
Scandinavia and the Baltic, with a growing mobile network of two
million subscribers, an Internet service and a fixed network with
more than six million subscribers. It is also the owner of the
largest Swedish cable TV operator.
Telia's income last year was estimated at six billion US dollars.
It is expected that the merger with Norway's Telenor, a process
expected to end by late 2000, would affect the company's further
development. Telia is also present on telecommunication markets in
several central and east European countries.
The third bidder is Austria Telekom, one of the three branches of
Post und Telekom Austria. The company's income last year amounted
to three billion dollars.
Michael Phair, the head of Dresdner Kleinwort Benson, said the
three companies were excellent potential bidders.
(hina) rml