Czech Republic: Finance Ministry unveils plans to privatise Budvar Brewery

Budejovicky Budvar is a candidate for privatisation, said Finance Minister Miroslav Kalousek, according to Pravo and Radio Praha article published on August 27th. Deputy Finance Minister Ivan Fuksa outlined the government's privatisation plans in an interview with Mlada Fronta Dnes on Monday.

Mr. Fuksa told Mlada Fronta that teams had been formed within the Ministry to work on the privatisation deals. He said that brands such as Budejovicky Budvar beer would only be sold to those willing to maintain the product's integrity. The sale of the Budvar brewery has, however, sparked criticism. In a television debate on Sunday, deputy prime-minister Jiri Cunek spoke out against the plans, saying that it made little sense to sell off a company that made the government billions of crowns every year.

The daily Pravo said that the Agriculture Ministry is now expected to pave the way for the sale by transforming the state-owned enterprise into a joint-stock company.

Deputy Prime Minister Jiri Cunek expressed opposition to a Budvar selloff Sunday.

According to recent reports, Budvar is one of several state-owned companies being prepared for full or partial privatisation by the government, in a series of transactions that analysts estimate could raise more than 100 bln crowns.

29 August, 2007