Five Estonian State Enterprises Could Be Partly Privatised

07.10.2008 (16:39)

Estonian Ministry of Economic Affairs has shortlisted five state enterprises for partial privatization.

The five are port landlord Port of Tallinn, power company Eesti Energia, postal company Eesti Post, Tallinn Airport and Estonian Railways’ freight business, Baltic Business News reports.

The common element for the five is that they all need huge investments for development and can raise it only by IPO since the government is strapped by next year’s budget.

At the end of October the Ministry plans to submit its analysis on the possible privatization of the companies to Prime Minister Andrus Ansip.

According to Minister of Economic Affairs Juhan Parts, Eesti Energia alone needs EEK 80 billion in investments in the next ten years. Also the supervisory board of Eesti Energia has supported the idea of launching an IPO.

Investment banker Hendik Igasta from SEB Enskilda said that the only problem is that it may not be the best time for an IPO. “But this crisis will blow over and, as a large power company, Eesti Energia would be very attractive on the stock market,” he said.

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