Citizens to Receive an Additional 7 Percent of T-HT Shares

The Croatian Government decided at today’s session to increase the share package in the public offering of HT shares to 32.5 percent. Of this share, 25 percent will be secured for Croatian citizens, while the remainder will be allocated to institutional investors, it was stated at the session.

 “We have taken care to ensure that part of the shares remains for institutional investors in the public offering, while the vast majority of the package is purchased by Croatian citizens,” emphasized Prime Minister Ivo Sanader. Due to the significant interest from Croatian citizens, as well as institutional investors, the Government has decided to increase the share package in the public offering of HT shares from the initial 20 to 23 percent to 32.5 percent of HT shares. The Government has also amended the decision on the public offering of HT shares to address the issue of power of attorney for Croatian seafarers – powers of attorney certified by ship captains will be recognized and accepted, and captains are required to submit a copy of the ship’s logbook along with these powers of attorney.

“We are all aware of the exceptional interest of Croatian citizens in the public offering,” emphasized Deputy Prime Minister Damir Polančec, reiterating that, according to the rules of public offerings, the exact number of citizens who have submitted offers so far cannot, should not, and will not be disclosed. It is the Government’s responsibility, as in the case of INA, to ensure the most transparent possible method of selling HT shares. We do not suggest anything to anyone; anyone who buys shares assumes the risk, and it is only the Government’s responsibility to ensure a fair game,” reiterated Prime Minister Sanader. Reiterating that the Government does not encourage or discourage anyone, he conveyed to citizens that the decision to purchase any shares and to participate in the capital market is up to them.

He also reiterated that his Government will not introduce a capital gains tax. Institutional investors in the public offering of HT shares can now count on 7.5 percent of shares following today’s Government decision. Deputy Prime Minister Polančec emphasized that the Law on the Privatization of HT also stipulates that Croatian citizens with preemptive rights and special benefits will participate in the public offering, while institutional investors will participate without preemptive rights and special benefits. Institutional investors are important for stabilizing the price once HT shares are listed on the stock exchange, he said. Prime Minister Sanader explained that reserving shares for institutional investors is also important for citizens, as 1.35 million citizens are included in four mandatory pension funds in Croatia, and around 150,000 citizens have invested in about 80 open investment funds. Following today’s Government decision, Polančec announced that a proposal for the amendment and supplement of the prospectus for the public offering of HT shares will be sent to the Croatian Financial Services Supervisory Agency (Hanfa) and the independent regulator in London.

“We expect that Hanfa will provide a stance on the amendment of the prospectus this afternoon, or possibly tomorrow morning, which will then be printed and distributed,” said Polančec, noting that the proposal for the Government’s decision has been coordinated with the Government’s advisors, communicated with Hanfa and the independent regulator in London, and discussed and coordinated with HT and its majority owner, Deutsche Telekom. The public offering of HT shares, with a price range of 245 to 320 kuna, began on September 17 and from then until September 27, citizens can submit their offers with preemptive rights and special benefits, so-called privileged offers up to the amount of 38,000 kuna, and non-privileged offers above that amount, while institutional investors will be able to submit their offers until October 1.

The Government will decide on the final sale price of HT shares and the distribution of shares on October 1, and on October 5, HT shares will be listed on the Zagreb and London stock exchanges. Currently, Deutsche Telekom holds 51 percent of HT shares, 7 percent of HT shares has already been transferred to the Fund for Croatian Veterans, and after the public offering in which 32.5 percent of shares are sold, and after 7 percent of shares are sold to employees of HT, the Government, or the state, will retain 2.5 percent of HT shares. (H)