Telekom Austria was the only bidder for a 51% stake in Telekom Srbija after other parties pulled out because of a high minimum price, a finance ministry official was quoted saying in Reuters.
Telekom Austria, advised by Bank of America Merrill Lynch and…
Telekom Austria was the only bidder for a 51% stake in Telekom Srbija after other parties pulled out because of a high minimum price, a finance ministry official was quoted saying in Reuters.
Telekom Austria, advised by Bank of America Merrill Lynch and Raiffeisen Investment, announced it has submitted a conditional bid of E800-950m for the stake, whose minimum price had been set at E1.4bn by the authorities.
Finance ministry secretary Vuk Djokovic was quoted saying that the working group had five working days to verify the validity of the offer.
In a release, Telekom Austria said that its offer ‘is subject to negotiations with the government about certain value creating conditions that will result in an expected enterprise value/adjusted EBITDA 2011 multiple of approximately 4.8x.
It added that it committed to capital expenditures of E450m over a three year period.
Serbia owns 80% of the telecoms incumbent, while Deutsche Telekom-owned OTE controls the rest.
