State looks to take "at least EUR 1bn" for Telekom

The government will discuss on Thursday selling 40 percent of Telekom Srbija's shares by way of an international tender. The tender will occur in two phases, and the government is expected to announce it either in June or September, according to Belgrade daily Politika, which adds that the sale will be similar to mobile operator Mobtel's sale to Norway’s Telenor. State looks to take "at least EUR 1bn" for Telekom The starting price for the auction will be the highest one offered by interested investors in the pre-qualification tender. According to the daily’s sources, the starting price will not be under EUR 1bn, and could reach EUR 1.5bn. PM Mirko Cvetkovic's circles are saying that the money gained the sale of Telekom will be set aside for a special fund for financing infrastructure projects. According to the current ownership structure, Greek OTE owns 20 percent of the company and the state of Serbia owns 80 percent. Asked why 40 percent is being sold, Politika’s source from the government said that this amount was given to avoid accusations of favoritism when it comes to one possible buyer, Deutsche Telekom – that owns a portion of OTE – and to give other interested buyers the chance to become majority owners. Whoever acquires the 40 percent in the tender will be able to increase this share to majority by buying odd shares from Telekom employees and citizens. Economy Minister Mladjan Dinkic denied that Deutsche Telekom has a right of first purchase, since it co-owns OTE. There are three large companies that have unofficially shown interest, according to sources, and they include telecommunications companies from Egypt and Turkey. Telekom Serbia was founded in June 1997 as a shareholders company. The same year, 49 percent of the company was sold, 29 percent to Italian STET and 20 percent to OTE. The Italian company sold its shares back to the state in December 2002, giving it 80 percent ownership. The state has the “golden share” in the company, giving it the right to veto all important strategic decisions in the board of directors. Telekom Serbia also owns Telekom Srpska, in the Republic of Srpska (RS), Bosnia, and Montenegrin M:tel.

State looks to take "at least EUR 1bn" for Telekom

The starting price for the auction will be the highest one offered by interested investors in the pre-qualification tender.

According to the daily’s sources, the starting price will not be under EUR 1bn, and could reach EUR 1.5bn.

PM Mirko Cvetković's circles are saying that the money gained the sale of Telekom will be set aside for a special fund for financing infrastructure projects.

According to the current ownership structure, Greek OTE owns 20 percent of the company and the state of Serbia owns 80 percent.

Asked why 40 percent is being sold, Politika’s source from the government said that this amount was given to avoid accusations of favoritism when it comes to one possible buyer, Deutsche Telekom – that owns a portion of OTE – and to give other interested buyers the chance to become majority owners.

Whoever acquires the 40 percent in the tender will be able to increase this share to majority by buying odd shares from Telekom employees and citizens.

Economy Minister Mlađan Dinkić denied that Deutsche Telekom has a right of first purchase, since it co-owns OTE.

There are three large companies that have unofficially shown interest, according to sources, and they include telecommunications companies from Egypt and Turkey.

Telekom Serbia was founded in June 1997 as a shareholders company. The same year, 49 percent of the company was sold, 29 percent to Italian STET and 20 percent to OTE.

The Italian company sold its shares back to the state in December 2002, giving it 80 percent ownership.

The state has the “golden share” in the company, giving it the right to veto all important strategic decisions in the board of directors.

Telekom Serbia also owns Telekom Srpska, in the Republic of Srpska (RS), Bosnia, and Montenegrin M:tel.