The Portuguese government ahs decided to float 70 percent of state postal service CTT – Correios de Portugal on the stock exchange, according to a statement issued Thursday at the end of a Council of Ministers meeting.
The model defined by the government is to sell “A number of shares representing 70 percent of the capital,” through two separate operations: An initial public offering (IPO) on the national (retail) market and a direct sale to a group of financial institutions, “that will be obliged to disperse the shares on the capital markets.”
The government will decide how much of the 70 percent will be sold in the retail transaction and how much to institutional investors, although it has already said that 5 percent of the shares will be reserved for workers at a discount of 5 percent against the established sale price.
According to the Portuguese press, the government opted for the IPO, rather than a direct sale because it expects to earn more from the operation and because it considers CTT to be more attractive for this type of operation.
Portuguese daily newspaper Público meanwhile reported that in the mid term the Portuguese government planned to sell of the remaining 30 percent it will own in the company after the partial privatisation. (macauhub)