The European Bank for Reconstruction and Development (EBRD) may be interested in investing in Telekom Srbija if a privatisation process goes ahead.
Asked at a briefing with Western Balkans journalists about privatisation projects the bank could be…
The European Bank for Reconstruction and Development (EBRD) may be interested in investing in Telekom Srbija if a privatisation process goes ahead.
Asked at a briefing with Western Balkans journalists about privatisation projects the bank could be interested in investing in, an EBRD managing director cited Telekom Srbija as an example.
A spokesperson for the bank declined to add to the comments made by EBRD MD for Central and South Eastern Europe, Jean-Marc Peterschmitt.
Late last month, it emerged that the government plans to sell the incumbent telco, valued at about €1.5bn, within a year to help address its budget deficit. Meanwhile, new prime minister Aleksander Vucic, who took office last month, has confirmed that the government will privatise some state-owned companies in its efforts to overhaul the economy.
Also in April, the EBRD board of directors adopted a new, four-year strategy for Serbia which focuses on strengthening the private and financial sectors and developing efficient and sustainable public utilities. As part of this, the bank said it aims to foster privatisation processes. The bank noted that it considers Serbia’s progress in accession talks with the European Union as “a key external factor for reforms, growth prospects and investors’ confidence”.
Earlier local reports speculated that the privatisation would be likely to commence within the first 100 days of the new government’s term.
Deutsche Telekom and Telekom Austria have indicated interest in the company along with an unnamed US financial organisation and operators from Turkey and Russia, reports claimed.
Telekom Srbija has declined to comment.
In March, Sinisa Mali, economic adviser to Serbia’s first vice-president, said the government had no immediate plans to sell its stake in Telekom Srbija but added that any possible privatisation would involve selling shares on the Belgrade Stock Exchange.
The Serbian government 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.
