City of Bratislava to sell stake in Czech flag carrier CSA.

By bne IntelliNews August 26, 2010
The city of Bratislava is selling its 0.98% stake in Czech national flag carrier Czech Airlines (CSA), the CIA news agency reported. The stake is valued at CZK 26.78mn (EUR 1.1mn) as the nominal price of one share is set at CZK 5,000. The parties interested in the tender are to submit applications by Sep 20, while the winner is to be chosen at the beginning of October. Interested parties are also required to submit a CZK 1.34mn principal as a proof of interest. The city of Bratislava bought the stake in the framework of the privatisation from the National Property Fund of the Czech Republic and Slovak Republic in 1992. Other small shareholders at the company are the city of Prague and insurance company Ceska Pojistovna. CSA is 95.7% controlled by the Czech state (up from 91.75% controlled before) following a capital hike in May through swapping CZK 2.5bn of CSA debt to state-owned firm Osinek for equity. In October 2009, the government rejected an offer by the Unimex-Travel Service consortium to buy the then 91.75% state-owned stake in CSA for CZK 1bn (EUR 39.7mn). According to earlier released media reports, CSA cut its loss by 89.7% y/y to CZK 134mn in Q1 with the improvement mainly reflecting one-off income from the sale of the duty-free shops to Aelia Czech Republic from the Lagardere Services group for CZK 764mn. In May, the government approved a 3-year recovery and savings plan which is to allow the company to reduce its loss to some CZK 600mn in 2010 after the CZK 3.7bn loss reported in 2009.

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