Spectator on facebook

Spectator on facebook

FNM to buy Slovnaft shares from EBRD

LONDON - The European Bank for Reconstruction and Development (EBRD) and Slovakia's state privatization agency the National Property Fund (FNM) have reached an agreement under which the FNM will buy back the bank's stake in the Slovak oil refiner Slovnaft a.s, EBRD officials said on April 13.
The EBRD took a 10.5 percent stake in Slovnaft in 1995 when it bought half the refiner's 113 million issue of global depository receipts, which flopped on international markets.
The bank later offered the shares for repurchase and an agreement in principle was reached in talks between EBRD president Jacques de Larosiere and Slovak Finance Minister Sergej Kozlík, Slovak officials said.

LONDON - The European Bank for Reconstruction and Development (EBRD) and Slovakia's state privatization agency the National Property Fund (FNM) have reached an agreement under which the FNM will buy back the bank's stake in the Slovak oil refiner Slovnaft a.s, EBRD officials said on April 13.

The EBRD took a 10.5 percent stake in Slovnaft in 1995 when it bought half the refiner's 113 million issue of global depository receipts, which flopped on international markets.

The bank later offered the shares for repurchase and an agreement in principle was reached in talks between EBRD president Jacques de Larosiere and Slovak Finance Minister Sergej Kozlík, Slovak officials said.

EBRD alternate director for Slovakia, Tomas Parizek, told a country presentation at the bank's annual meeting in London that the agreement would "allow the FNM to redeem the shares from the EBRD at a price which is acceptable to the EBRD." He declined to give any details of the price.

When it bought the stake, the EBRD effectively paid the 1,000 Sk face value per share. But shortly afterwards the FNM sold a 39 percent stake in the refiner to a management-led group at an implied price of 156 Sk per share.

The EBRD has in the past expressed general concern at Slovakia's frequent practice of privatization through management buyout, saying the sell-offs are usually well below market value.

The FNM holds 25 percent of Slovnaft, which was initially privatized in the first wave of mass voucher privatization completed in 1993.

Top stories

Crematorium in Bratislava is an architectural revelation Photo

Those who have experienced farewells in other crematoria know what makes it special. Now the best work by the architect Ferdinand Milučký is getting a monograph

Crematorium in Bratislava by architect Ferdinand Milučký

What kind of expectations do some Slovaks have for world leaders?

Among EU member states, opinions of the United States declined in all but two — Poland (which makes some sense) and Slovakia (which does not).

Donald Trump

Crates and boxes. Slovaks discover new ways of grocery shopping

Farmer’s boxes are gaining customers in Slovakia as people slowly become more conscious about quality and the origin of the food they eat.

Foreigners: Top 10 events in Bratislava Video

Tips for the top 10 events in the capital between January 19 and January 28, plus regular services in different languages, training, temporary exhibitions and highlights of the year.

Scandi 4