Final bids for Telekom opened, Government to decide

The Government of Serbia finally saw final offers of six companies interested in the acquisition of 58% of shares at Telekom. The offers were estimated by a privatization advisor, French company Lazard and the Government decides on the best one not only based on price but also for the offered investment plan and social program. If none of the offers is satisfactory, they will give up on privatization of Telekom.

Five years ago, only one Italian company for less than EUR 1,4 billion which was the amount asked by the previous Government wanted to buy Telekom. This year, there were eight interested buyers 58% of shares and six of them delivered the offers. It is a good sign, Rasim ljajic, minister of telecommunication said two weeks ago when the offers were opened.

In order to support competition, data on the interested investors were kept in privacy but for a few times it has been communicated from Nemanjina that if none of the offers is good enough, sale is not going to happen. Apart from price, investment and social program will be taken into account since the objective is to preserve the company.

So, if none of the offers is good, there will be no sale but there will be changes in Telekom, mainly through dismissals of 30% of staff out of 13.000 employed at all Telekom’s companies in Serbia, the Republic of Srpska and Montenegro.

Tender for collection of offers for 58% shares was published in July and it has been speculated that the best offer was provided by Telekom Slovenia, the American Fund Apolo and the Chinese which early this month met the members of the Government of Serbia. It has been guessed that the best offer totals EUR 1,2 billion with rich social program and there were guesses the Government will not accept less than EUR 1,5 billion.

Telekom Srbija a.d. Beograd

LAZARD FRANCE

Telekom Slovenije Ljubljana

Apollo Global Management LLC New York