Telekom Austria announced it has submitted a revised conditional bid of up to E1.1bn for a 51% stake in Telekom Srbija.
The revised bid still falls short of the minimum price of E1.4bn set by the authorities.
On March 21, Telekom Austria was the sole…
Telekom Austria announced it has submitted a revised conditional bid of up to E1.1bn for a 51% stake in Telekom Srbija.
The revised bid still falls short of the minimum price of E1.4bn set by the authorities.
On March 21, Telekom Austria was the sole bidder for the stake but it only made a conditional bid of E800-900m and said that its offer 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 initial offer also included a commitment to capital expenditures of E450m over a three-year period.
The government gave the Austrian company until May 4 to improve its bid.
Serbia 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.
