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Gibtelecom: FOR SALE
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The Gibraltar Government wants to sell off its stake in Gibtelecom, for reasons which are not clear at present.
The Government hold a 50% stake in the company. It will be recalled that the other 50% was purchased by the Slovakian owned Telekom Slovenije when the US Verizon pulled out in 2007.
Chief minister Peter Caruana told Gibraltar International that 'some interest had already resulted from market soundings.'
Caruana wants to sell 'to remove uncertainty on this issue.'
WHOLE OR PART
It is planned to sell the whole 50% stake or less, but the Government appears eager to sell.
Any sale had to be at the right price by an organisation that would 'ensure that investment continues to be made in technology to ensure a good service for business and residents of Gibraltar," he told the magazine, but a decision is likely to be made this year 'to remove uncertainty on this issue.'
When it purchased a 50% stake in Gibtelecom, the Slovaks paid around ?37 million to Verizon. So the Gibraltar Government probably wants around that for its stake - or more.
At the time of their purchase, it was said that the 50-percent share in Gibtelecom had cost the Slovaks 36.8 million euros. At today's rate of exchange that's around ?37 million.
The Telekom Slovenije Group said then that it had taken an important new step in its strategy of expanding its operations to foreign markets.
The Gibraltar market is small but there were expectations for growth. Gibtelecom is also a relatively good rate of return for their investment, with around ?9 million being shared by the two partners.
Since the Slovaks are also largely Government-owned, it is not known if they would prefer to have a Government partner at Gibraltar rather than a commercial partner.
From the Gibraltar viewpoint, it could well be that staff would prefer a Gibraltar Government involvement, as people here think such a linkage provides greater security. Such thinking is part of the Gibraltar colonial upgringing. Gone are the days, however, when people would go for a job in the naval dockyard on the grounds that it would never close, until it did!
The Government's involvement in Gibtelecom is seen as conflicting with its role as telecoms regulator.
PRESENTATION
Next Tuesday Gibtelecom will be hosting an event at the Company?s Customer Services Centre at Europort. At the event Bojan Dremelj, President of Telekom Slovenije will be presenting to John Gonzalvez, President of the Gibraltar Basketball Academy a team shirt of Union Olympia Slovenia?s top basketball club, which has been donated by the club to the Academy.
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