LONDON, Oct 11 (Reuters) - Plans to sell off central and east
European state assets are stuttering back into life after
stalling last year as countries such as Poland and Bulgaria seek
to bolster public finances.
But progress is patchy given the complexity of winding down
the state's role in formerly centrally planned economies and
policy reversals by some governments.
Here are updates of state asset sale plans in the region:
BOSNIA
The government is in talks with U.S.-based drug maker
Alvogen Inc to sell its 19-percent stake in drug firm Bosnalijek
<BSNL.SJ> after a previous attempt to divest its holdings
failed.
BULGARIA
Bulgaria has said it would sell its 33-percent stake in a
power distributor controlled by Germany's E.ON Ag <EONGn.DE> as
well as its majority stake in the stock exchange.
The centre-right government has also said it would sell
state-held minority stakes in 55 companies.
The planned privatisation of cigarette-maker Bulgartabak
<BTHG.BB> has yet to occur and a national ban on smoking in all
cafes and restaurants was reversed in June amid concerns that
the prohibition would hit the company's valuations.
CROATIA
Croatia is on track to complete the sale of its loss-making
shipyards as part of the conditions it must meet to secure
European Union membership.
The government vowed this year to start selling its stakes
in the firms where the state has less than 25 percent though the
plan has not been detailed yet.
CZECH REPUBLIC
The government has said it is committed to keeping a
qualified majority 60 percent in power group CEZ <>.
ESTONIA
The government sold a minority stake in Eesti Telekom
<ETLAT.TL> late last year after refusing to divest it for years.
A partial listing of state-owned power company, Eesti
Energia, was considered but shelved due to unfavourable market
conditions and political resistance.
No asset sales are on the agenda at least until after
parliamentary elections in March 2011.
HUNGARY
Since taking over the reins in May, Hungary's centre-right
government has talked of wanting to grow, rather than sell off,
state assets.
Budapest is seeking to end Russian ownership in Hungarian
oil and gas conglomerate MOL <.MOLB.BU> via the 21-percent stake
held by Surgutneftegaz <SNGS.MM>.
LATVIA
Latvia has said its first priority is to increase returns
generated by state-owned companies and improve corporate
governance rather than privatising them. It has ruled out
divesting its railway, energy and forestry companies.
LITHUANIA
Lithuania is pushing for more efficient and transparent
management of its state-owned assets which it estimates to have
a potential market value of 18 billion litas ($7.3 billion)
while trying to attract private capital into these companies.
The government has said it is not in a hurry to privatise
the companies but wants to raise the level of management and
returns in order to help cut the budget deficit.
Lithuania, however, wants to sell stakes in its energy
companies to raise capital for a new nuclear power plant.
POLAND
Poland is embarking on a wave of privatisation that has so
far secured just over half of its 2010 privatisation goal of 25
billion zlotys ($8.8 billion).
The sale of a 10 percent stake in top utility PGE <PGEP.WA>,
worth about $1.4 billion, has been reportedly launched while
energy sector heavyweights Lotos <LTOS.WA>, Enea <ENAE.WA> and
Energa are set for divestment in the coming months.
A 64-percent stake in Poland's state-owned stock exchange is
also moving ahead in an offer valued at up to $450 million.
Warsaw has also said it would sell stakes in top firms such
as lender PKO <PKOB.WA> and insurer PZU <PZU.WA>.
ROMANIA
The government has appointed Franklin Templeton to manage
state investment fund Fondul Proprietatea ahead of a planned
initial public offering in early 2011. Set up to compensate its
citizens whose properties were seized under communism, the fund
is likely to be listed on the Bucharest Stock Exchange and a
second foreign bourse.
(Reporting by Irina Ivanova in Bucharest, Dunai Marton in
Budapest, Adrian Krajewski in Warsaw, Igor Illic in Zagreb,
David Mardiste in Tallinn; writing by Sebastian Tong; editing by
Stephen Nisbet)
(sebastian.tong@thomsonreuters.com; +44 20 7542 8561; Reuters
Messaging: sebastian.tong.reuters.com@reuters.net))
($1=2.829 Zloty)
($1=2.468 Lithuanian Litas)
