The Serbian government reportedly plans to sell Telekom Srbija within a year, with several suitors already having expressed interest.
The government is likely to launch a sales process for the entire company, currently valued at about €1.5bn, to help…
The Serbian government reportedly plans to sell Telekom Srbija within a year, with several suitors already having expressed interest.
The government is likely to launch a sales process for the entire company, currently valued at about €1.5bn, to help address its budget deficit local publication Blic reported citing unidentified sources. However, the precise form of the process will not be known until there is a public call for an adviser for the transaction.
Earlier local reports stated the privatisation is likely to get underway within the first 100 days of the new government’s term. New Serbian prime minister, Aleksander Vucic, who took office on Sunday, has been quoted as saying the new government will work to overhaul the economy, which will include privatising some state-owned companies.
Deutsche Telekom and Telekom Austria have indicated interest in the company, the report states, along with an unnamed US financial organisation and operators from Turkey and Russia.
The German incumbent, which already has a strong presence in Eastern Europe, is said to be the most serious potential buyer.
Telekom Srbija has declined to comment.
In March, Sinisa Mali, economic adviser to Serbia’s first vice-president, said the government had no immediate plans to sell its stake in Telekom Srbija but added that any possible privatisation would involve selling shares on the Belgrade Stock Exchange.
The Serbian government has a 58.11% stake in Telekom Srbija, while the company itself has a 20% stake. Smaller shareholders include Serbian citizens and current and former employees.
Last year, local media reported that the government planned to launch an international tender for the telco, with Blic citing unnamed sources in June as saying the ministry of finance and economics would aim to raise €2bn from the sale of the entire company.
