The Portuguese government announced plans to raise at least 430 million euros by selling 70% of its stake in the Portuguese postal group (CTT-Correios de Portugal).
Earlier this month, the Portuguese Asset Management Agency (Parpublica) officially decided to initiate the CTT privatization project through an initial public offering (IPO) on the Euronext Lisbon stock exchange. The Portuguese government stated that after the IPO, Parpublica will still hold a 30% stake in CTT.
The government also indicated that CTT shares will be offered at a price of 4.10-5.52 euros per share, with a total value of approximately 828 million euros, and company employees will be allowed to purchase up to 5.25 million shares of CTT.
This marks another state-owned enterprise privatization in Portugal following the completion of the privatization of EDP-Energias de Portugal SA in June 2008. Media reports suggest that CTT will face equity diversification reforms along with other state-owned enterprises, including the national airline TAP, to increase the much-needed funds for the government.
In 2011, the European Union (EU) and the International Monetary Fund (IMF) approved an aid package of 78 billion euros for Portugal, but required the country to dispose of assets and increase government revenue. In 2012, the Portuguese government agreed to sell the airport operator ANA to Vinci SA for 3 billion euros.
