State to sell road technology expertise by auction
At government meeting on Thursday, Minister of Economic Affairs and Infrastructure Taavi Aas (Center) received consent to sell all the shares of the state-owned road survey, road construction supervision and certification company Teede Tehnokeskus at a public auction.
The ministry wishes to sell all the 10,554 shares of AS Teede Tehnokeskus. The nominal value of one share is €100. The proposal to hold an auction was made by the minister at the government meeting on Thursday, the government's communication office said.
Following a public auction, all state-owned shares will be sold to the highest bidder next autumn.
"For more than 50 years, Teede Tehnokeskus has provided engineering services in the field of road infrastructure and helped the state to create knowledge and new solutions in the development and management of road infrastructure to improve the quality of our roads and make traffic safer," Aas said according to spokespeople.
The minister noted that over the years the company has established a strong position in the free market and privatization will create a better opportunity to realize the company's ambitions.
Aas said Teede Tehnokeskus is expected to fetch €4.8-5.1 million in the auction.
In preparation for the privatization, AS Teede Tehnokeskus commissioned an analysis of the company's normal value in the summer of 2021, which enables the owner and potential buyers to assess the company's value and entailed financial risks.
AS Teede Tehnokeskus operates under conditions of fully open competition and does not provide services to the state through direct contracts. The company would be privatized with existing free market contracts.
The Ministry of Economic Affairs and Communications will start a search for an adviser for the sell-off, whose main tasks will be advising the state, updating the normal value of the shares on the basis of the audited annual accounts for 2021, preparing information materials for the public auction and conducting the public auction of shares.
The vision of AS Teede Tehnokeskus, a company established 57 years ago, is to become a reputable road expertise and innovation center in the Baltics and the surrounding region.
The company currently employs more than 50 people, 70 percent of whom are engineers with higher education in different fields. In addition to Estonia, Teede Tehnokeskus provides services in Latvia, Lithuania and Germany, and is planning to increase the share of foreign markets in the future.
In 2020, Teede Tehnokeskus earned a net profit of €306,400 on revenue of almost €3.5 million.
Follow ERR News on Facebook and Twitter and never miss an update!
Editor: Kristjan Kallaste