New Year brings RomTelecom consultant

The Ministry of Communications and IT (MCTI) is set to appoint the consultant for the privatisation of national telephony operator RomTelecom at the beginning of next January, according to a MCTI release.

Ten companies submitted bids to take over the counselling service aimed at continuing the company’s privatisation.

These companies are: Epic European Privatisation & Investment Corporation, Squire Sanders & Dempsei LLP, Schroder Salomon Smith Barney, SG. Conseil Pays Emergents, CA-IB Corporate Finance, Berantungs GMBH, Pricewaterhouse Coopers, Rothschild Conseil International, JP Morgan, ING Barings, and Skaden, Arps, Slate, Meagher & Flom LLP.

During the first selection stage, MCTI will shortlist three bidders by the end of the year and will decide on the winner by January 15, 2002.

The consultant will be paid with a percentage of the transaction, whose value will be settled when the contract between the Romanian state and the consultancy company is signed, MCTI sources told Mediafax.

The stake to be sold will have to be established by MCTI and the consultant, depending on the situation on the international telecom market.

The first privatisation stage of RomTelecom took place in 1998, when Greek company OTE purchased 35% of the company’s share capital and the usufruct right for another 16% stake for 675 million dollars.

The fee of financial consultant Goldman Sachs accounted for 0.9% of the total value of the transaction concluded in December 1998. According to the contract, the amount could not be smaller than nine million dollars.

According to clauses included in the privatisation documents signed by Romanian authorities and OTE in 1998, recently announced by MCTI, the state can sell a maximum of 39% of the 65% stake it holds, while the sale can only be done through public offer if OTE does not agree to it.