Slovakia’s government has published its recently signed ‘Memorandum of Understanding [MoU] in relation to the sale of 49% shares of Slovak Telekom [ST] by Slovak Shareholders’ which it agreed with the incumbent telco’s majority (51%) owner Deutsche Telekom (DT), and is now available on the Central Register of Contracts (http://www.crz.gov.sk). The MoU, with an effective date of 26 February 2014 and an unspecified expiry date, clarifies that the Ministry of Economy (34% owner of ST) and the National Property Fund (NPF, 15%) have informed DT of their wish to sell the shares in a dual-track process which offers two exit options in parallel: an initial public offering (IPO) to institutional investors and the general public; and a direct sale. The document adds that the Slovak shareholders have indicated their preference for an IPO, although subject to a final decision which will be informed by factors including stock market conditions. By signing the MoU, DT and the Slovak shareholders undertook to cooperate on the sale process, with an IPO envisaged to be completed within nine months of signature; a direct sale prepared in parallel is envisaged to take up to eight months to complete. It is also acknowledged that DT has pre-emptive rights over the shares (although the German group has not indicated that it would exercise its rights). The MoU also contains detailed timetables and information on selecting advisors and other agents for the sale process.
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