A Policy Maker's Guide to Privatisation
Policy makers and privatisation experts agree that it is critical to “get privatisation right.” A well-planned and executed transaction, backed by sound rationales, institutional and regulatory arrangements, good governance, and integrity can have consequences on future divestment activity by enhancing investor confidence while gaining the support of stakeholders and the public. Drawing on the internationally agreed OECD Guidelines on Corporate Governance of State-Owned Enterprises and decades’ worth of national experience across both OECD and Partner economies, this Policy Maker’s Guide to Privatisation provides practical advice to newcomers on key stages of the process from inception to post-privatisation. With global privatisation activity trending upwards and expected to rise, this Guide can support policy makers in their decision making process in the years to come.
Organising the process of privatisation
The actual process of privatising state-owned enterprises (or parts of them) involves both decision-making within the state and practical measures undertaken by state-owned enterprises themselves, in consultation with external advisors. This chapter covers the following aspects: effectively steering the process to see through the transaction; best practices for drawing upon external advice; determining company valuation and establishing sound pricing methods; determining potential buyers and handling bids; and, active and on-going communication with stakeholders and the public.
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