Citizens get 31 shares from Telekom Serbia - Estimated company's market value EUR 2.27 billion

The Serbian government adopted on Friday Conclusion on free distribution of shares of "Telekom Serbia" and determined the market value of capital of 2.27 billion euros. Every citizen will receive 31 share at the starting price of 2.27 euros per share.

In the conclusion of the Serbian government, employees and former employees will receive a 6.94% free shares of "Telekom", and the citizens will receive 15% out of one billion shares.

The Serbian government has mandated "Telekom Serbia" to carry out all necessary activities in order to enable the distribution of shares and trade them on the stock exchange, it was stated by the government's Office for Cooperation with the media.

Given that the decision on the amount of capital was finally adopted, it is followed by registration of the capital with the competent institutions, and then the distribution of free shares and exit on the stock market, which requires at least two weeks. If the capital of "Telekom" was estimated based on the price paid for the purchase of 20% shares from the Greek OTE, it would amounted to 1.9 billion euros, and citizens would each get about 59 euros. By this calculation it is obvious that the capital of Serbian operator was determined at a somewhat higher level.

As for the procedure of division of shares to citizens, it will be the same as in previous NIS securities division and the Airport "Nikola Tesla". Shares will "lie" to the existing equity accounts of citizens, and as soon as the securities "spin" on the stock exchange it will be possible to sell them on the market.

What price will they have on the BSE, depends primarily on the demand for them. According to stock exchange rules, the cost of the first day of trading on the so-called "prime" market, where "Telekom" will be ranged, can increase even four times, but it can fall by up to 20%.