All fingers are crossed that the privatisation of Telekom Srbija will go ahead this time. The last attempt in 2011 failed to achieve the desired price tag, while another regional privatisation – Telekom Slovenije – collapsed earlier this year.
The Serbian government has received six bids in its second attempt to privatise 58% of incumbent Telekom Srbija, according to Minister of Trade, Tourism and Telecommunications, Rasim Ljajic.
Speaking on local radio, Ljajic said that its financial adviser, Lazard, was reviewing the bid documents while the privatisation agency was carrying out background checks.
He added that that the groups would select a preferred bidder, based on price, in 14 days’ time.
Reported suitors include private equity firm Apollo, China Telecom and Russia’s MTS, while Telekom Slovenije was also understood to be participating. The minister said that the majority of bids came from investment funds.
The last privatisation process, for 51% of the telco, drew only one bidder, Telekom Austria, which offered €1.1bn (US$1.21m), well below the asking price.
Ljajic reiterated that if the €1.4bn (US$1.54bn) asking price is not met, the government will once again call off the process.
The process launched in August, when 14 groups submitted non-binding bids.
The privatisation has also attracted political opposition, one of the factors that derailed Telekom Slovenije’s privatisation earlier this year – Cinven had been the sole bidder in that process.