State should sell Telekom shares ‘as soon as possible’

27 Sep 2011

The director of the executive committee of Slovakia’s National Property Fund (NPF), Miloslav Homola, has said that the government should divest its 49% interest in Slovak Telekom (ST) as soon as possible. The NPF owns 15% of ST while the Ministry of Economy holds 34% of the incumbent telco, which is 51% controlled by Germany’s Deutsche Telekom (DT). As reported by Hnonline.sk, Homola urged that the government should accelerate its sell-off plan – roughly scheduled for autumn 2012 – because DT has resisted three consecutive requests to pay dividends in full to the state.

Slovak finance minister Ivan Miklos revealed in March that the state aimed to divest its 49% stake in the incumbent telco within 18 months to cut the budget deficit; an international tender or flotation on the stock markets of Bratislava, Prague or Warsaw are amongst the options to be pursued. DT holds first refusal rights on the stake and is also required to give permission for an initial public offering (IPO). In May 2011 CommsUpdate reported that DT was in talks with the Slovakian government to buy the 49% it does not already own in ST, according to Roland Mahler, the head of DT’s Europe (excluding Germany) division.

The legal merger of ST and mobile arm T-Mobile Slovensko took effect on 1 July 2010 in line with DT’s group strategy; the combined company operates under the legal entity of Slovak Telekom, using the T-Mobile and T-Com (fixed and broadband) brands.

Slovakia, Slovak Telekom (ST, incl. T-Mobile, DIGI)