Tender for sale of Telekom by the end of the year?

(Photo: telekom.rs)

Tender for privatization advisor for sale of Telekom Srbija will be released by the end of the year, Novosti found out at the Government of Serbia. This will practically start the process of repeated privatization of the most profitable domestic company. The selected advisor will estimate the portion of capital the state will offer, out of 78,1% shares it owns and at what price and the Government will decide.

Four years ago, the company was estimated at EUR 2,2 billion so then, the government asked minimum of EUR 1,4 billion for a portion of 51% then. The only bidder was Austrian Telekom which was not ready to set aside that amount immediately but only EUR 950 m in cash and the rest for investments so the tender failed.

Milan Kovacevic, consultant for foreign investments, thinks it is high time to sell Telekom.

According to Kovacevic, the state should now keep a single share at Telekom since in case it is a significant percentage, some 40% for example, it will only halt the future majority stakeholder. Apart from that, it can also influence agreed sales price.

Kovacevic does not want to speculate with potential sales price for Telekom but he only outlines that this company’s shares so far have not been listed ta the Belgrade Stock Market and that prce would be a good indicator when it comes to investors’ interest.

Nenad Gujanicic, a stock market analyst, also outlines it is very difficult to say how much a company is worth if not listed at the stock market.