| Ukraine's deputy prime minister Anatoly Kinakh announced that the new Ukrainian government has no plans to sell state-owned telecommunications operator Ukrtelecom in 2005.
Kinakh said, “massive preparation work must first be done” in order to increase the market value of Ukrtelecom prior to any privatisation. Ukrtelecom controls 80% of the telecommunications market in Ukraine. Last year, the company generated profits of around 100 million euros. Approximately 93% of Ukrtelecom is owned by the state, with 7% owned by company personnel.
A tender to sell 43% of Ukrtelecom was delayed, then cancelled in 2004. Deutsche Telekom, Turkcell and Russian operators Rostelecom and AFK Sistema were among the potential buyers of Ukrtelecom shares. The 43% stake in Ukrtelecom was valued as high as 810 million euros, according to 2004 estimates published by the Ukrainian business press.
Intelecon Research & Consultancy Ltd. 17/02/2005
Source: DMEurope |