Portugal to sell state assets worth 1.3 billion euros

13 June 2006

Lisbon, Portugal, 13 June – Portugal has said that state assets valued at 1.3 billion euros, which are currently part of state holding company Parpública, as being “available for sale,” including stake sin logistics companies, steel working companies and telecommunications companies.

In the most recent annual report and accounts of Parpública, published at the end of last week and reported in Portuguese daily Diário de Notícias, Parpública valued its asset portfolio at 2 billion euros.

The list of assets, “available for sale” includes stakes in important pulp and paper companies, such as Inapa, Sacocel, Portucel/Soporcel, Portucel Serviços and Portucel Tejo.

In telecommunications, there are two small stakes, one in Portugal Telecom and another in Optimus, Portugal’s third largest mobile phone operator.

The list also includes stakes in the countries two largest companies, power company EDP (20.5 percent) and Galp (12.3 percent), market leading fuel producer and distributor.

Real estate assets include housing institute, Instituto Nacional de Habitação, the Estoril racetrack management and real estate companies, as well as the real estate of the Naval Dockyards of Viana do Castelo.

The state’s stake in steel company SN Longos is also being put on the market, along with that in naval construction and repair company Lisnave and car manufacturer and distributor, Salvador Caetano.

The list of available assets does not include stakes in airline TAP, airport management company ANA – Aeroportos de Portugal and electricity transmission network REN – Rede Eléctrica Nacional, which are in the process of being privatized by the government.

According to the report, the sale of stakes in Tertir (23.3 percent), SN Longos (10 percent) and Optimus (5 percent), “were subjected to a study” during the last financial year “without it actually being possible to reach conditions that made it possible to carry out sales,” and negotiations are to continue.

Amongst sales concluded last year are those of 4.4 percent of EDP, for 573 million euros, and the privatization of almost the entire capital or pulp producer, Portucel Tejo for 36.4 million euros. (macauhub)