Slovak gov't sells stake in Slovak Telekom to Deutsche Telekom

Slovakia will sell its 49-percent stake in Slovak Telekom to majority shareholder Deutsche Telekom for €900 million, with the Government signing a contract to that effect with the German company in Bratislava on Tuesday. At the same time it was agreed that Deutsche Telekom will pay Slovakia dividends from last year amounting to almost €16 million. The contract also stipulates the creation of a special account reserving more than €100 million for resolving possible legal disputes related to its activities from the past. According to the Finance Minister Peter Kažimír, who currently also serves as interim head of the Economy Ministry, the Government was selling its stake in the company for the first time ever in the most transparent manner possible for setting a price - first by a public offer of shares on capital markets and then via a direct sale. "This test of the market was a clear mirror into which we could look, and it generated a price of €750 million, with more than 110 institutional investors and more than 2,500 retail domestic investors expressing interest," said Kažimír. While the Government was deciding on the matter, the Germans presented a binding offer on May 7. "This meant significantly more satisfaction for Slovakia," said the minister. Kažimír reiterated that the Government will use the income from the sale to reduce public debt.