"Telekom Srbija worth EUR 3.5bn"

Telekom Srbija is worth between EUR 3 and 3,5bn, according to assessments of one of the world’s leading consultant firms, daily Politika writes; Telekom denies. The company’s name is kept secret for the time being because it could participate at the tender for the privatization consultant, which will be announced soon by the government, the newspaper claims. "Telekom Srbija worth EUR 3.5bn" The article continues to say that "this figure will be the key argument for the initial price at the tender, considering the reputation of the firm which made the assessment". This speculation comes amid preparations of the Serbian government to offer for sale a 40 percent stake in the state-owned telecommunications company. Politika also writes that "if EUR 3,2bn is determined as the final price of the value of all of Telekom, the government will probably start the tender with a somewhat higher price, for instance of EUR 3,5bn, which means that it would initially ask for EUR 1,4bn for 40 percent of the company". If several companies show interest, the auction procedure will be initiated, which could rise the total value of Telekom and the part which is being sold to EUR 4bn – or EUR 1,6bn for 40 percent, says the newspaper. The amount which citizens will get in the form of free shares will depend on the initial price at the tender. If that price is EUR 3,5bn (as the overall value of Telekom), the citizens would get five percent of ownership through free shares, the newspaper calculated. Telekom rejects Politika's figures Telekom Srbija reacted to the Politika article with a statement today, saying that allegations in media about the company’s value are incorrect. It further reads that Telekom decisively denies allegations of certain media that representatives of Deutsche Telekom or other potential investors are present in the company. According to Telekom’s statement, “it would be contrary to law to allow access to the company’s acts and documentation to anyone without adequate decision of shareholders – PTT Srbija (the postal service of Serbia), that is, the state of Serbia and Greek OTE company”. The statement is also appealing to media to check all information regarding Telekom Srbija with the company instead of publishing “incorrect information from incompetent sources”.

"Telekom Srbija worth EUR 3.5bn"

The article continues to say that "this figure will be the key argument for the initial price at the tender, considering the reputation of the firm which made the assessment".

This speculation comes amid preparations of the Serbian government to offer for sale a 40 percent stake in the state-owned telecommunications company.

Politika also writes that "if EUR 3,2bn is determined as the final price of the value of all of Telekom, the government will probably start the tender with a somewhat higher price, for instance of EUR 3,5bn, which means that it would initially ask for EUR 1,4bn for 40 percent of the company".

If several companies show interest, the auction procedure will be initiated, which could rise the total value of Telekom and the part which is being sold to EUR 4bn – or EUR 1,6bn for 40 percent, says the newspaper.

The amount which citizens will get in the form of free shares will depend on the initial price at the tender.

If that price is EUR 3,5bn (as the overall value of Telekom), the citizens would get five percent of ownership through free shares, the newspaper calculated.

Telekom rejects Politika's figures

Telekom Srbija reacted to the Politika article with a statement today, saying that allegations in media about the company’s value are incorrect.

It further reads that Telekom decisively denies allegations of certain media that representatives of Deutsche Telekom or other potential investors are present in the company.

According to Telekom’s statement, “it would be contrary to law to allow access to the company’s acts and documentation to anyone without adequate decision of shareholders – PTT Srbija (the postal service of Serbia), that is, the state of Serbia and Greek OTE company”.

The statement is also appealing to media to check all information regarding Telekom Srbija with the company instead of publishing “incorrect information from incompetent sources”.