Telefonija to sell Beotel, business buildings and infrastructure by December 28th - Company starts implementation of reorganization plan

Telefonija Business System has recently invited binding bids from companies interested in taking over its subsidiary Beotel. This is only one of the final steps in the implementation of the company's reorganization plant, which came into effect on October 30th.

The fact that Telefonija is only the second company of that size to start implementing the adopted reorganization plan may be devastating to our economy and legal system.

- Telefonija's reorganization plan became effective on October 30th, the board of creditors was constituted in mid-November, and the implementation of the plan has just started – Vladimir Pavlovic, director of WM Equity Partners, the consulting company that made the reorganization plan and is responsible for monitoring its implementation, says in a talk with eKapija.

According to Pavlovic, the key measure for the plan's implementation is to repay the debt to three groups of creditors: group B - workers (late salaries), group C - Tax Administration, and the administrative group - creditors who claim less than RSD 20,000 each.

(Vladimir Pavlovic)

One of the measures designated by the plan is debt rescheduling for all unsecured creditors over the period of nine years (a two-year grace period and a seven-year repayment period).

As Chairman of the Telefonija Supervisory Board Branimir Boskovic confirmed to our web portal, an invitation to submit binding bids for Beotel will be sent Friday to three interested prospective buyers - Telenor, Orion, and 7LCP Emerging Europe LP, which owns the VeratNet provider in Serbia.

- The deadline to submit bids is December 28th. We expect to definitely receive two bids, and maybe even all three, so that we are sure that it will be no problem to sell Beotel - says Boskovic.

From infrastructure to the source of finance for debt repayment

Two days before aforementioned invitation was published, the company advertised the sale of its business building in Kumodraska Street and a business building with a warehouse in Cerska Street in Belgrade, as well as gas and optical infrastructure across Serbia, which is owned by this business system.

The most attractive of all is definitely the Telefonija business building in Kumodraska Street, whose estimated value is RSD 592.4 million (about EUR 5.5 million). The business building with a warehouse in Cerska Street could be sold for somewhat below RSD 90 million, which is also its estimated value.

Branimir Boskovic (Photo: ekapija.com)

Telefonija also sells optical networks in Bajmok, Cantavir, Backo Dusanovo, Visnjevac, Stari and Novi Zednik, Djurdjin, Ljutovo, Tavankut, and a part of the optical infrastructure in Subotica. Gas pipeline networks in Novi Zedniku-Cantavir, Ljutovo and Pacir are also put up for sale.

All proceeds from the sale of Beotel, business buildings and infrastructure equipment will be used to pay Telefonija's debts.

Branimir Boskovic says he is satisfied with how quickly the reorganization plan is being implemented, but adds that he is not happy with the prices in initial bids, given that Beotel is worth much more.

Shares

Let us remind that Telefonija shares are listed on the Belgrade Stock Exchange and that the company was a component of Belex15 index. At the time when the reorganization plan was adopted, the share price stood at RSD 85, so that the company's market cap was somewhat below RSD 50 million. That was also the lowest price of Telefonija shares in 2012.

Ever since, their price has been constantly going upwards, reaching the level of RSD 201 on Monday. Telefonija's current market cap amounts to about RSD 116.4 million.

Jelena Djelic