German incumbent Deutsche Telekom (DT) is reportedly emerging as a strong contender to acquire Telekom Srbija, with the Serbian government considering it the favoured buyer.
Serbian publication Blic quoted an unnamed source as saying it is “logical”…
German incumbent Deutsche Telekom (DT) is reportedly emerging as a strong contender to acquire Telekom Srbija, with the Serbian government considering it the favoured buyer.
Serbian publication Blic quoted an unnamed source as saying it is “logical” that DT has its sights set on the Serbian incumbent given it owns assets in neighbouring countries.
DT also recently submitted a bid for Telekom Slovenije, which is also being privatised.
The same source was cited as saying the government favours Deutsche Telekom as a buyer.
Spokespeople for DT and Telekom Srbija declined to comment. The Ministry of Economy was not immediately available for comment.
In late April, it emerged that the government plans to sell Telekom Srbija, valued at about €1.5bn, within a year to help address its budget deficit. DT and Telekom Austria, which also has assets in the region, are thought to have indicated interest in the company, along with a US financial organisation and operators from Turkey and Russia.
The following month, the European Bank for Reconstruction and Development’s (EBRD’s) managing director for Central and South Eastern Europe, Jean-Marc Peterschmitt, told journalists the bank would be interested in investing in Telekom Srbija if the privatisation goes ahead.
According to the Blic report, the government aims to sell Telekom Srbija by the end of the year.
The state 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, it was suggested that the government planned to launch an international tender for the telco, with local publication 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.
