Madrid to keep hold of Tabalcalera

30 March 1998

Madrid to keep hold of Tabalcalera

THE Spanish Government will publish legislation this week to ensure its continued control over the soon-to-be-privatised national tobacco producer and distributor Tabalcalera.

The Government will control of Tabalcalera for eight years after the sale of its 52.4% stake in the body.

The disposal, scheduled for completion on April 27, is expected to raise pta330 billion ($2.1bn).

Details of the legislation authorising the sale have still to be announced but they are likely to include a “golden share” proviso that will prevent rival tobacco groups taking a significant stake in the group.

• Financial Times 30/03/98 page 25