State-controlled Telekom Srbija has accepted Lazard Freres’ bid to advise on its planned privatisation.
The French bank, which was the sole applicant for the advisory role, is expected to establish the model for privatisation within the next two…
State-controlled Telekom Srbija has accepted Lazard Freres’ bid to advise on its planned privatisation.
The French bank, which was the sole applicant for the advisory role, is expected to establish the model for privatisation within the next two months, the incumbent said in a statement. Lazard will also assess the value of the company.
The government, which has a 58.11% direct stake in the in the telco, will take a final decision on which sales process to follow.
Telekom Srbija management staff own 20% of the company’s shares and additional investors include other employees, both current and former, and Serbian citizens.
Local media have reported that the government would aim to raise up to €2.5bn from the sale of the entire company.
Deutsche Telekom, France’s Orange and Telekom Austria are considered to be likely strategic buyers, while investment funds from the US and the European Bank for Reconstruction and Development (EBRD) have reportedly expressed interest.
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. It provides telephone and internet services in Serbia, Bosnia and Herzegovina and Montenegro, while its cable TV channel Arena Sport airs in the same countries as well as Croatia and Macedonia.