KPN is selling its 6.5% stake in Cesky Telecom (approx. 20.87 mil. shares), Reuters reported this morning. The current free float in CT reaches 15.5% and the placement will likely cause a stock overhang and stock-price drop.
TelSource, where KPN holds 51%, owns 27% in Cesky Telecom; the Czech government has 51% in the company.
As expected, Cesky Telecom’s AGM, held on Friday, approved, among others, the following board-of-director proposals:
- the distribution of 2002 profits (a dividend of CZK 57.50 per share, a dividend record day of June 27, and a payment date of October 6),
- future dividend policy (i.e., a total dividend payment amounting to 50–70% of consolidated net profit under IAS for full-year 2003 and 2004),
- the acquisition of a 49% stake in Eurotel, including the method of financing (the purchase price is USD 1.05 billion), and
- the appointment of a new CEO, G. Berdar.
Separately, the government should discuss the medium-term business strategy of the company, including a new privatization concept, by next month, the Czech-based Euro weekly reports today. Possible privatization scenarios reportedly include the separate sale of Cesky Telecom and Eurotel, their combined sale to a single investor, or the sale of minority stakes in both companies.
Jan Hájek