2.1 pc of profit from selling Romtelecom shares go to consultant


The consortium made up of SSIF Swiss Capital Company (consortium leader), UBS Limited, Musat and Associates, SPARL and BT Securities Company will get 2.085 per cent of the gross profit from selling all or part of Government-owned shares at Romtelecom, according to the consultancy contract signed last week, according to a release from the Ministry for Informational Society (MSI).

The gross profit is considered the difference between the value of the stock sold and the value of the same stock calculated at its nominal/accounting value registered in the accounting papers of the ministry. According to their data, the contractual obligations of the consultant were to provide consultancy services (expert assistance, legal assistance) in the process to conclude Romtelecom privatisation, during the entire process of privatisation, drafting all the papers and performing measures during the operation if they are necessary, also those which are meant to optimize the process of privatisation (purchases, sales of assets, divisions, mergers, conversions, etc), the elaboration and implementing of privatization strategies and the proposal of the privatisation method.

β€œIn case the transaction of shares owned by the Romanian Government at Romtelecom Company is not achieved, the variable side of the contract must not be paid for,” reads the contract.

The deadline set for the contract services is August 11, 2014, with the mentioning that this contract can be extended depending on circumstances. The good accomplishment guarantee of the contract is RON 5 million (banking guarantee letter for conclusion) and must be paid in maximum 7 days since the contract is signed. The contract is valid until December 31, 2014, deadline that can be reduced or extended by mutual agreement.

The ministry owns a stake representing 44.99 percent of the Romtelecom shares. The rest of the shares are owned by the Greek group OTE. The consortium made up of Raiffeisen Capital&Investment, Deutsche Bank and AG London also competed for the job but were disqualified because they failed to submit all papers required, according to MSI.

The announcement requiring consultancy services was published on October 7 in the local and international press.

 

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