Telekom Austria has not submitted a new bid for Telekom Srbija, the company and the Serbian authorities have said, reports Bloomberg.
The government reportedly denied media reports saying that Telekom Austria would acquire 30% of Telekom Srbija for…
Telekom Austria has not submitted a new bid for Telekom Srbija, the company and the Serbian authorities have said, reports Bloomberg.
The government reportedly denied media reports saying that Telekom Austria would acquire 30% of Telekom Srbija for E840m.
In mid-April, Telekom Austria was invited to improve its bid for a 51% stake after it only made a conditional offer of E800-950m whereas the minimum price had been set at E1.4bn.
The offer by the Austrian operator, the sole bidder, also included a commitment to capital expenditures of E450m over a three-year period. It also said that its bid was ‘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.’
The government owns 80% of the telecoms incumbent, while Deutsche Telekom-owned OTE controls the rest.
The authorities are advised by Citigroup, while Telekom Austria is advised by Bank of America Merrill Lynch and Raiffeisen Investment.
