The Cabinet approved a plan for selling its 51% stake in Cesky Telecom (CT) yesterday. It anticipates the following timetable:
* by Jan 15 - the tender for a privatization adviser begins
* by end-May - the adviser is selected
* June - the adviser submits a detailed privatization plan
* H2 2004 - the sale of the state's stake starts
* 2005 - CT privatization is finished.
The Cabinet also discussed favored privatization methods; currently a direct sale and placement on the market are being considered as possible scenarios. While the IT Ministry favors a direct sale to a strategic investor, the highest bid will likely be the major criterion, as required by the Finance Ministry. The Cabinet has also reiterated that CT will be sold together with Eurotel, its 100%-owned mobile subsidiary. The above-mentioned news is unsurprising as being largely expected.
Based on the preliminary estimates, the Cabinet is seeking to pick up more than CZK 50bn. We evaluate the state's 51% stake at CZK 54.2bn (based on our per-share target price of CZK 330) plus a majority premium.
Source: Czech Press Agency, MFDnes
Jan Hájek