Three European telcos and international investors are reportedly interested in participating in the privatisation of Telekom Srbija.
Germany’s Deutsche Telekom, France’s Orange, Telekom Austria, investment funds from the US and the European Bank for…
Three European telcos and international investors are reportedly interested in participating in the privatisation of Telekom Srbija.
Germany’s Deutsche Telekom, France’s Orange, Telekom Austria, investment funds from the US and the European Bank for Reconstruction and Development (EBRD) are all eyeing the telco, according to an Al Jazeera report referencing unidentified sources.
The Serbian government is expected to launch the search process for an adviser for the privatisation by the end of the week, the report stated.
Prime Minister Aleksandar Vucic told reporters last October that he believed the incumbent telco could be privatised in 2015. He was cited as saying it should attract a higher price than when the government of Mirko Cvetkovic tried to sell it in 2011 as Serbia, which is working toward entering the European Union, is now in a better position and undertaking reforms.
Cvetkovic’s government rejected a €1.1bn bid from Telekom Austria, which owns the country’s smallest mobile operator Vip, earlier that year as it did not match its valuation. About seven months later, it agreed to buy back Greek telco OTE’s 20% stake in Telekom Srbija for €380m.
In June 2013, local media reported that the state would aim to raise €2bn from the sale of the entire company this time around.
The Serbian government has a 58.11% direct stake in Telekom Srbija while the company’s management has a 20% holding. Additional shareholders include Serbian citizens and current and former employees.
Telekom Srbija is the largest of Serbia’s three mobile network operators, followed by the local units of Telenor and Telekom Austria, and is also the leading fixed-line operator.
This week, the Serbian incumbent became the majority shareholder in Dunav Banka (Danube Bank) after participating in a capital increase.
Telekom Srbija was not immediately available for comment.
