BRATISLAVA, February 9, (WEBNOVINY) – The Cabinet agreed on Wednesday to sell the country’s six largest heating plants, in which the state holds a 100-percent stake. Finance Minister Ivan Miklos told a news conference that the Cabinet recommended the head of the executive committee of the government privatization agency, FNM to prepare a plan of their privatization in cooperation with the ministries of finance and economy. According to minister Miklos, the ministers stroke accord on privatization of the heating plants.
The minister further reported that the Cabinet will look for a strategic investor for heating plants in Bratislava, Trnava, Martin, Zilina, Zvolen and Kosice in a public tender. Miklos said that the stake to be sold have not yet been agreed upon, but it should be no less than 51 percent. According to him, the materials to be prepared by the ministries and the FNM are to suggest what stock should be sold. “The material is to present also arguments and a suggestion whether regional self-governments will potentially participate in the sale,” Miklos added.
There are several reasons speaking in favor of sale of the heating firms, the finance minister continued. He listed among them unfavorable economic situation of the companies, their growing indebtedness, and necessary investments. The privatization is in the public interest, Miklos underscored. In his words, heating plants that generate profit do so thanks to the sale of emission allowances.
The government privatization agency believes that privatization of six largest central heating companies, in which it holds a 100 percent stake on behalf of the state, would be advantageous. “Comparing the expected revenue from the sale of a 100-percent stake with the expected income from dividends, the sale of the equity stake in the heating companies to a strategic investor is more advantageous. Immediate proceeds from the sale is more beneficial from the fiscal point of view as well as regarding consolidation of public funds, than the FNM’s long-term position in companies of local importance,” the FNM stated in an analysis of economic benefits of holding the stock with the aim of collecting dividends or selling the shares.
SITA