Research Report Privatisation Potential in the European Union Research Report Privatisation Potential in the European Union Julia Borrmann, Markus Fichtinger, Christian Helmenstein, Georg Neumüller September 2014 Study on behalf of United Europe Contact: Christian Helmenstein Economica Institute Liniengasse 50-52 1060 Vienna / Austria Phone: +43/676/3200-401 Email:
[email protected] Content Content 1 List of Tables and Figures 2 List of Tables 2 List of Figures 2 Executive Summary 3 1 Expected benefits of privatisation 5 1.1 Why do governments privatise? 5 1.2 Theoretical implications of the ownership structure 6 1.3 Empirical effects of privatisation 7 1.4 Potential scope of privatisation 8 2 Methodology 8 2.1 Scope of the study 8 2.2 Identification of the state-owned enterprises and the publicly held shares 9 2.3 Valuation of the government holdings in listed firms 10 2.4 Valuation of the government holdings in non-listed firms 11 2.5 Valuation of financial institutions 13 3 Value of government-held shares in firms 15 3.1 Value of government-held shares in listed firms 15 3.2 Value of government held shares in non-listed financial institutions 16 3.3 Value of government-held shares in non-listed firms excl. financial institutions 18 3.4 Total value of government-held shares in listed and non-listed firms 18 4 Conclusion 21 5 References 23 6 Appendix 25 1 List of Tables and Figures List of Tables Table 1: Total equity value of government shares in listed firms by country 15 Table 2: Thirty largest equity holdings in listed firms held by governments 16 Table 3: Equity value of non-listed financial institutions 17 Table 4: Total government holdings of listed and non-listed firms according to country 19 Table 5: Privatisation thresholds – three scenarios 20 Table 6: Equity value of government share in listed firms 25 Table 7: Equity value of government share in non-listed firms excl.