Slovakia moved closer to an initial public offering of the state’s holding in Slovak Telekom with a decision to bring together two separate government stakes, but Deutsche Telekom could still bring the process to a halt by tabling an offer for the shares.
The government on Wednesday approved a plan to consolidate two state-owned stakes in the incumbent telco – together totalling 49% – under a single entity, Reuters reported.
The move puts the country a step closer to listing the shares. It aims to conclude the IPO by the end of June, the newswire quoted an economy ministry spokesperson as saying.
Deutsche Telekom controls 51% of Slovak Telekom and has a right of refusal to the shares, under certain conditions. It was given the opportunity to bid for the shares, but has yet to do so.
Although the IPO process has been approved by the government, the German telco could still make a move, the spokesperson said. If it makes a bid before the placement of the shares, the government will consider it.
Deutsche Telekom told Reuters that it is looking at the shares and will evaluate the opportunity based on whether or not it makes economic sense.
Whatever the outcome, IPO or otherwise, "we can continue to executive our strategy," a company spokesman said.
