INTERVIEW-Czech dep FinMin sees airport sold to one bidder

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The Czech government may sell a majority stake in Prague Airport to one bidder in a tender rather than floating the company on the stock market, First Deputy Finance Minister Ivan Fuksa said.

Fuksa told Reuters in an interview he believed the winner could be picked by the end of the next year, while the planned sale of national carrier Czech Airlines may possibly be delayed if the firm's performance improves.

Fuksa also said the state was in no rush to complete the sale of a 7 percent stake in power company CEZ through the stock market.

The cabinet has been mulling several ways to privatise or lease the airport, which has been growing rapidly thanks to strong economic growth in the central European country which has spurred both business and private travel.

Fuksa said the likelihood was "toward a sale to a winner of a tender."

He added that a 66 percent stake in the firm would likely be offered, with the rest probably going to regional authorities.

The airport served 5.58 million passengers in the first half of 2007, up 9 percent year-on-year. It had revenues of 2.6 billion crowns ($143.4 million) and profit of 654 million.

Fuksa declined to estimate the possible value of the company, put by some analysts at around 70-90 billion crowns.

He said the sale could go ahead regardless of ongoing talks on buying land to build a new runway.

The cabinet is due to receive a study on the various options for selling the airport as well as Czech Airlines by March.

Fuksa said the judgement was open on the airline, which has swung into the black from heavy losses sparked by a failed expansion plan in the past years.

"If there is a binding plan prepared for the next year which would include the very positive developments that are being very roughly predicted now, the government may decide that it may not perhaps privatise fast," he said.

NO HURRY WITH CEZ

Fuksa also said the government was not in a hurry to complete the sale of a 7 percent stake in CEZ, the biggest listed company in central Europe with market capitalisation of $47.5 billion.

The government had intended to raise 31 billion crowns through the sale -- based on significantly lower share price than Friday's 1,390 crowns -- and place the money in a state road-building fund by the end of the year.

So far, the state has sold 1.57 percent, according to data from the securities registry, raising less than half of the intended amount, and Fuksa said there was no need to reach the 31 billion soon as the fund was not lacking money.

Fuksa also said there was no plan on the table on reducing the 7 percent stake for sale as a result of the higher valuation. He had in the past been cited by media as saying the state may consider selling less.

"There has been no serious discussion at economic ministers' meeting (on changing the stake to be sold)... It is running according to the government resolution," he said.

The state now holds a 66.04 percent stake in CEZ.

(Editing by David Cowell)

($1=18.13 Czech Crown)

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Keywords: CZECH PRIVATISATION/

[PRAGUE/Reuters/Finance.cz]