The government made the first step towards the privatization of Cyta by selecting Citigroup, the investment bank, as the financial advisor that will drive the process forward.
According to the Inspector of privatizations Constantinos Herodotu, the choice of Citigroup, one of the biggest names worldwide in the area of mergers, acquisitions and privatization, was fully transparent and based on public procurement.
The announcement of the selection of Citigroup, which will be accompanied by PWC, comes in a period when the Cyprus program is frozen due to the stalemate regarding the foreclosures bill.
According to the program, the sale of Cyta must be completed in 2015 and the state should receive a total of € 1 billion by 2016, from the disposal of state assets.
Mr. Herodotu, addressing the employees' concerns that "the organization’s privatization is made in the dark," stressed that under the law on privatization, a joint consultative committee will be set up to consult with the leaders of trade unions about worker’s issues.
The privatization unit, as the technocratic body that will implement the decisions will be informed of the consultations between the committee and employees.
Concerning the privatization procedures, Mr. Herodotu said that these processes are complex and that there are many steps to full privatization of such organizations.
"There isn’t an auction issue so as to achieve the highest price," observed Mr. Herodotu, adding that “there is a list set by the Cabinet with a decision of December 2013 in relation to the next day of Cyta privatization».
He noted that among the issues decided by the cabinet is to safeguard and create new jobs, create new products and enhance efficiency.
He pointed out that from the moment the privatization process begins, the competent authority will need about 7-8 months to complete the task of privatization.
The process until the complete privatization of the organization, he said, will go through three stages.
“Information will be presented to the interested investors at each stage to be able to submit proposals of interest, so that we in our turn choose the best investor," he noted.
Finance Minister Haris Georgiadis said yesterday that under the loan agreement, the government will have to make significant moves in relation to privatizations in 2015.
He noted that the privatization prospect concerns specific organizations, Cyta and the Ports Authority.
He referred to specialized consultants for the privatization of both organizations, who will help, he said, to improve competitiveness in essential areas such as telecommunications and ports.
"There will be progress in this context in 2015, the minister of finance assured."
According to today's publication of Phileleftheros, , the state chose the law firm of Antis Triantafyllides in cooperation with Shearman & Sterling as legal consultants . The remuneration of the legal adviser will reach € 1,5 million and the assignment will be validated after the end of the deadline for submission of objections. According to the newspaper, the legal consultants who lost the competition may appeal against the decision, delaying the process.
According to the Inspector of privatizations Constantinos Herodotu, the choice of Citigroup, one of the biggest names worldwide in the area of mergers, acquisitions and privatization, was fully transparent and based on public procurement.
The announcement of the selection of Citigroup, which will be accompanied by PWC, comes in a period when the Cyprus program is frozen due to the stalemate regarding the foreclosures bill.
According to the program, the sale of Cyta must be completed in 2015 and the state should receive a total of € 1 billion by 2016, from the disposal of state assets.
Mr. Herodotu, addressing the employees' concerns that "the organization’s privatization is made in the dark," stressed that under the law on privatization, a joint consultative committee will be set up to consult with the leaders of trade unions about worker’s issues.
The privatization unit, as the technocratic body that will implement the decisions will be informed of the consultations between the committee and employees.
Concerning the privatization procedures, Mr. Herodotu said that these processes are complex and that there are many steps to full privatization of such organizations.
"There isn’t an auction issue so as to achieve the highest price," observed Mr. Herodotu, adding that “there is a list set by the Cabinet with a decision of December 2013 in relation to the next day of Cyta privatization».
He noted that among the issues decided by the cabinet is to safeguard and create new jobs, create new products and enhance efficiency.
He pointed out that from the moment the privatization process begins, the competent authority will need about 7-8 months to complete the task of privatization.
The process until the complete privatization of the organization, he said, will go through three stages.
“Information will be presented to the interested investors at each stage to be able to submit proposals of interest, so that we in our turn choose the best investor," he noted.
Finance Minister Haris Georgiadis said yesterday that under the loan agreement, the government will have to make significant moves in relation to privatizations in 2015.
He noted that the privatization prospect concerns specific organizations, Cyta and the Ports Authority.
He referred to specialized consultants for the privatization of both organizations, who will help, he said, to improve competitiveness in essential areas such as telecommunications and ports.
"There will be progress in this context in 2015, the minister of finance assured."
According to today's publication of Phileleftheros, , the state chose the law firm of Antis Triantafyllides in cooperation with Shearman & Sterling as legal consultants . The remuneration of the legal adviser will reach € 1,5 million and the assignment will be validated after the end of the deadline for submission of objections. According to the newspaper, the legal consultants who lost the competition may appeal against the decision, delaying the process.
3287.99
1275.09
