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UPDATE 1-Portugal sells 31.5 pct stake in CTT at small discount
September 5, 2014 / 8:11 AM / in 3 years

UPDATE 1-Portugal sells 31.5 pct stake in CTT at small discount

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LISBON, Sept 5 (Reuters) - Portugal’s state holding company Parpublica has sold a 31.5 percent stake in postal firm CTT in the second and last stage of its privatisation at 7.25 euros a share, raising 343 million euros ($443.7 million), Parpublica said on Friday.

The price in the private offering was at a discount of a little more than 7 percent from Thursday’s closing price of 7.81 euros.

CTT shares, which had risen by about 25 percent since their bourse debut in December’s first round of the privatisation, were 4.5 percent lower at 7.46 euros by 0745 GMT, still well above the price in the offering.

Parpublica carried out the operation through an accelerated bookbuilding process aimed at institutional investors and qualified institutional buyers in the United States.

Caixa - Banco de Investimento and J.P. Morgan Securities acted as joint coordinators and joint bookrunners.

The privatisation process was part of a sale of state assets required as a condition of Portugal’s three-year EU/IMF bailout, which ended in May. Lisbon has overshot its privatisation target during the rescue programme, raising more than 8 billion euros. A few smaller privatisations have yet to be completed.

CTT posted a 14 percent rise in first-half net profit in July, helped by growing revenue in its financial services business.

The company has said it will consider setting up a postal bank and take a decision in the fourth quarter. Just before the privatisation last year the Bank of Portugal gave its authorisation for CTT to set up banking services if shareholders opt to do so, boosting CTT’s appeal for investors. (1 US dollar = 0.7727 euro) (1 US dollar = 0.7730 euro) (Reporting By Andrei Khalip; Editing by David Goodman)

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