Austrian incumbent Telekom Austria has denied interest in buying a minority stake in Serbian incumbent Telekom Srbija.
Responding to reports in the Serbian press, CEO Hannes Ametsreiter said any interest in the Serbian player would depend on the size of…
Austrian incumbent Telekom Austria has denied interest in buying a minority stake in Serbian incumbent Telekom Srbija.
Responding to reports in the Serbian press, CEO Hannes Ametsreiter said any interest in the Serbian player would depend on the size of stake available, with 40%, not being enough, he was quoted saying to Dow Jones.
Reportedly declining to comment on whether it would look at a controlling stake, he said TA would keep an eye on the situation.
Serbian news sources had reported that the local government could sell up to 51% of Telekom Srbija.
The Serbian government launched a tender to select an adviser to sell half of its 80% stake in Telekom Srbija in April of this year.
At the time, market observers thought that Deutsche Telekom’s 20% stake in the Serbian operator would likely to deter other candidates.
A TelecomFinance source said: “It’s going to be difficult to compete against a company which is already a shareholder and wants to increase its stake.”
Another source concurred: “I would be very surprised if it’s not Deutsche Telekom which buys the stake, although Telenor and Telekom Austria, which are already on the market, might have a chance.”
Valuations of about E2bn have been suggested by telecoms specialists.
At the regional level, Telekom Srbija controls Telekom Srpske, a fixed-line and
mobile operator in the Serbian part of Bosnia and Herzegovina, and mobile operator m:tel in Montenegro. In 2008, Telekom Srbija Group posted total operating revenues of RSD105.4bn (E1bn).
Although it is conceding market share to rivals Telenor and Vip mobile, Telekom Srbija still dominates the domestic mobile market. It claimed 60% market share at the end of 2008, but Telenor claimed 34% market share and Vip mobile 12% market share at the end of 2009.
Telekom Srbija will also lose out on fixed-line revenues since its monopoly on the segment ended in January when Telenor won the country’s second licence.
