- Profit increased to EUR 101 million
- Government mandate with respect to privatisation and investment management carried out
- Procedure for Austrian Post Office to be determined in September
Vienna, 8 April 2005. The privatisation measures taken last year have enabled OIAG to reduce the debts of Austria’s former nationalised industries. Although debt totalled EUR 709 million at the end of the financial year, subject to approval under the EC Merger Regulation, net debt is offset by funds already received from the issue of convertible bonds for shares in Telekom Austria and voestalpine, and by the anticipated revenues from an issue of VA-TECH shares.
Due to the reduction of debts amounting to EUR 6.3 billion at the end of 1999, OIAG has managed to significantly increase the value of its investments. As of 31 December 2004, OIAG’s investment portfolio represented a total value of around EUR 5.5 billion despite a number of disposals. Thanks to this considerable reduction in debt, net assets – the surplus of the portfolio value over net debt – increased to EUR 4.8 billion.
Revenues from privatisations during the year under review totalled EUR 1,119.3 million. OIAG continued to carry out the Austrian Government’s current privatisation mandate in the financial year 2004 by carrying out the following transactions:
• A total of 17 per cent of Telekom Austria shares were successfully sold via the stock exchange at the beginning of December. Within the space of just a few hours, an accelerated bookbuilding process made it possible to place 85 million Telekom Austria shares with national and international investors at a price of EUR 13.05. This generated privatisation revenues of EUR 1,109.3 million for OIAG.
• The foundation solution developed for the privatisation of Erzberg made it possible to take local interests into account whilst at the same time securing jobs at this opencast iron ore mine. The sale of this company generated privatisation revenues of EUR 10 million for OIAG.
As of 31 December 2004, OIAG reported a surplus for the year of EUR 101.0 million (2003: EUR 19.7 million). After writing back reserves, the net profit for the year was EUR 282.9 million (2003: EUR 100.0 million). In accordance with the resolution approved by the Annual General Meeting, this will be paid out in the form of a dividend of EUR 255 million for the year 2004.
This means that OIAG has certainly carried out the Austrian Government’s mandate with respect to privatisation and investment management.
No decisions were taken regarding the possibility of floating the Austrian Post Office on the stock exchange. However, constructive discussion led to the conclusion that it was essential for a Post Office Act to be passed beforehand. The Supervisory Board of OIAG will determine its course of action in September.
OIAG Corporate Communications
Anita Bauer
Mob.: +43 664 13 40 333
anita.bauer@oiag.at
