Telekom Srbija and Telekom Srpske to give 40m EUR for additional capitalization of Montenegrin M:tel

- Telekom Srbija and Telekom Srpske will finance 40m EUR worth of additional capitalization of Montenegrin M:tel directly from their profits, proportionally to their ownership shares in that company - Nezavisne Novine announced.

Ljubomir Rajšić, the Executive Director of M:tel in Podgorica, pointed out that the additional capitalization would stabilize that company and added that it would keep fighting with good competitors in Montenegrin market.

Telekom Srbija owns 51% of stocks of M:tel, while Telekom Srpske bought its 49% of stocks for 10m EUR on February 1st from Dutch company Ogalar whose owner is Serbia businessman Miroslav Mišković.

According to Rajšić, M:tel's basic problem in the previous period was the debt because of low founding capital.

- We have financed the investments worth 95m EUR, which we were unable to cover with the loans only, so that we needed additional capitalization - said Rajšić.