State-controlled Telekom Srbija has received only one bid to act as the advisor for its planned privatisation.
The incumbent opened the bid from French bank Lazard Freres today and has determined that it includes all the required documents, according to…
State-controlled Telekom Srbija has received only one bid to act as the advisor for its planned privatisation.
The incumbent opened the bid from French bank Lazard Freres today and has determined that it includes all the required documents, according to a company statement. It said it will make a decision on the offer within 25 days.
Telekom made a public call in mid-February for an adviser to provide management consultancy services for the privatisation, which will include determining which type of sales process to pursue.
The adviser’s other responsibilities will include drafting a valuation of the company and preparing a timetable for the sales process.
The Serbian government has a 58.11% direct stake in Telekom Srbija while the company’s management has a 20% holding. Additional shareholders include Serbian citizens, and current and former employees.
Local media have reported that the government would aim to raise up to €2.5bn from the sale of the entire company.
Germany’s 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.
The government abandoned plans to sell a 51% stake in Telekom Srbija in May 2011 as a €1.1bn offer from Telekom Austria fell short of the minimum €1.4bn it wanted to raise. Later in the year, the state bought back a 20% stake in the operator from Greek incumbent OTE – a move widely considered to be a step toward privatisation.
Prime Minister Aleksandar Vucic has said he believes the telco can be privatised in 2015 and command a higher valuation than it did during the 2011 sales process as Serbia, which is working toward entering the European Union, is now in a better position and undertaking reforms.
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.
