"Telekom" to be sold in autumn - tender for partner at end of September

The Government of Serbia agreed that the tender for strategic partner in "Telekom Srbija" should be announced in second half of the year, probably at the end of September.

According to current plans, the Government of Serbia, as the owner of 80% of capital in national telecommunication company, will announce public invitation for sale of the minority package of stocks in "Telekom Srbija". The price of that package is still unknown because the estimate of the events caused by the global economic crisis is still underway.

- It is clear that Serbia will not be able to get the price it wanted to set in year 2008 or 2007 – the source in the Government of Serbia says for "Novosti". – On the other hand, the area of telecommunications is, in spite of the crisis, still very profitable, so that we are going to set the bottom limit for the price. In spite of the obvious crisis, the value of "Telekom Srbije" is not dropping. But the question today is whether we will have enough money for all the obligations that await us. As a matter of fact, the main concern of "Telekom Srbije" is the Citibank’s loan whose repayment starts in May 2009. The funds from this loan were spent on procurement of the majority package of "Telekom Srpske". Namely, it was announced in October 2008 that that bank, as well as all other commercial banks in the West, would increase interest rates because of the increase in price of money in the global market. In addition, "Telekom Srbija" must fulfill, at least, part of its plan that involves very expensive investments if it wants to stay competitive with two more telecommunication companies in the market.

It is not the secret that the greatest interest in procurement of minority package of stocks of "Telekom Srbija" has been expressed by German "Deutsche Telecom". By the way, by purchasing 20% of stocks of Greek operator OTE, which now owns 20% of “Telekom Srbije”, this company is the owner of 5% of stocks of the Serbia-based company. Over the last few years, "Deutsche Telecom" started very aggressive penetration of the markets in the Balkans. Therefore, it now has very solid ownership in all telecommunication companies in this region.

The Government does not want to sell "Telekom Srbije" to a private owner – the source in the Government claims for "Novosti". – Our wish is to provide funds for continuation of investments, so that the public invitation will invite companies to buy the share of stocks that does no endanger majority ownership in one of the most profitable companies in Serbia.