Government: in IPO 32,5 per cent HT shares, out of which 25 per cent for the citizens

( Sep 25, 2007 ) Croatian Government decided to increase on September 24, the package of HT shares for IPO to 32,5 per cent, out of which 25 per cent will be reserved as priority for the Croatian citizens.
The rest of 7, 5 per cent shares will be distributed amount institutional investors, decided the Government at today's extraordinary session.
We looked that in the IPO part of shares remains for institutional investors and that majority of package is sold to the Croatian citizens, said Prime Minister, Ivo Sanader.
It is just due to large interest of the Croatian citizens but also institutional investors, that the Government passed decided to increase the package of HT's IPO-shares from former 20 or 23 percent to 32,5 per cent.
The Government has through the change of decision on public offering of HT-shares regulated also the authorizations for Croatian seamen - powers of attorney verified by the captains of the ship will be recognized and accepted and the captains must provide copy of log book.
We are all aware of the exceptional interest of the Croatian citizens for IPO, said Deputy Prime Minister Government Damir Polančec, and repeated that the rules of IPOs do not allow talking about exact number of citizens who submitted offers and that it should and would not be talked about.
It is up to the Government, as in the case of Ina, to ensure maximum transparency in selling the HT-shares. We do not suggest anything to anyone, everyone who buys shares takes risk, it is up to the Government to provide fair competition, repeated also PM Sanader
Stressing that the Government neither encourages nor discourages anyone, it is up to citizens to decide to buy any shares and participate in the capital market.
He said also that his Government will not introduce capital profit tax.
Institutional investors after today's Government decision may count on 7,5 per cent of shires.
Deputy Prime Minister Polančec said the Law on privatization of HT regulates that the right to participate in IPO will have also Croatian citizens with priority rights and special benefits and institutional investors without priority rights and special benefits.
Institutional investors are important for stabilization of price after the shares of HT are listed on stock exchanges, he said.
Prime Minister Sanader explains that reservation for institutional investors is also important for citizens, because over 1,35 million of citizens are included in the four mandatory pension funds in Croatia and 150 thousand of citizens invested in about 80 newly opened investment funds.
After today's decision of the Government, said Polančec, the Croatian Agency for Supervision of Financial Services (Hanfa) and independent regulator in London will receive proposal for change and amendment of the Prospectus for HT's IPO.
Initial public offering of HT-shares with price bracket from 245 to 320 HRK, began on September 17, citizens submit their offers without priority rights and special benefits from that date until September 27 these are so called preferential offer up to 38.000 HRK and above this amount in the so-called non-preferential offering, institutional investors may submit their offers by October 1.
On October 1 the Government will decide on the final selling price of HT-shares and their distribution, on October 5, HT-shares will be listed at the Zagreb Stock Exchange and London Stock Exchange.
Currently Deutsche Telekom has 51 per cent of HT-shares. 7 per cent of HT shares was already transferred to the Fund for Croatian Homeland War Veterans so that after IPO in which 32,5 per cent of shares is being sold and after the employees of HT- buy 7 per cent shares, the Government, that is the state will have remaining 2,5 per cent of HT-shares. (HINA)