Telekom Austria places sole bid for Telekom Srbija stake
Telekom Austria Group has submitted a conditional bid in the region of US$1.13-1.35 billion for the Serbian government’s planned sale of a 51% stake in the country’s incumbent operator, Telekom Srbija. The government however has set an unconditional minimum price of US$1.99 billion for a 51% stake.
If reports are to be believed, Telekom Austria is the only bidder for the stake in the company.
Telekom Austria Group added that the offer is, amongst others, also conditional to merger control clearance in Serbia resulting in a market consolidation. In addition, this offer is subject to negotiations with the government about certain value creating conditions that will result in an expected enterprise value/adjusted EBITDA 2011 multiple of approximately 4.8x.
Additionally, the Telekom Austria Group committed to capital expenditures of US$639.76 million within a three year horizon. These investments are part of the business plan which forms the basis of the above mentioned valuation.
Sale of Telekom Srbija may be cancelled (Serbia)
The government officials have stated that Serbia may decide not to sell a 51% stake in Telekom Srbija if bidders offer less than the minimum price of US$1.9 billion.
According to the officials, they will not sell it at any cost. If offers are below minimum price then they will say that the tender had failed.
Four firms are seen as expected bidders in the sale, for which Belgrade has set 21 March as a deadline for binding bids.
The official added that Deutsche Telekom, Telekom Austria, VimpelCom and Weather Investments would be likely bidders. France Telecom has already left, while America Movil and Turkcell are almost certain to pull out.
Turkcell and France Telecom have stated that they would not be bidding as the prices are too high.
OTE set to sell Telekom shares (Greece)
Greek telecoms company OTE has reportedly told the Serbian government that it is ready to sell its 20% stake in Telekom Srbija.
The sale is expected to take place during the upcoming international tender of the Serbian state-owned telecoms company.
According to reports, OTE has sent a letter to the Serbian government, confirming that it is ready to sell its shares as part of a package that will be offered to interested investors.
The new investor – according to plans will pay at least US$1.9 billion for a 51% stake in the company, with 31% coming from the government, and 20% from OTE. The deadline for submitting bids has been set for 21 March.
France Telecom won’t bid for Telekom Srbija stake
France Telecom SA spokesperson has revealed that the company has decided not to take part in the privatization of Serbian telecom operator, Telekom Srbija, as it considered the asset too expensive.
According to the company’s spokesperson, they have studied the tender offer but decided not to take part in the bidding process notably because they considered the asking price too high.
A series of companies including VimpelCom Ltd., Weather Investments SpA, Telekom Austria AG, America Movil SAB, Turkcell and Deutsche Telekom AG have applied to take part in the tender.
Final bids are expected at the end of March.
Seven telcos bid for Telekom stake (Serbia)
Serbia’s Ministry of Finance has announced that seven companies have applied to participate in a tender for the 51% stake in Telekom Srbija being sold by the government.
The seven companies include Deutsche Telekom, France Telecom, Telekom Austria, America Movil, Weather Investments, Turkcell and VimpelCom. According to a statement from the ministry, the seven qualify to participate in the tender and have been given the green light to take part in the next step in the process, which will be to submit a guarantee of payment in order to view Telekom’s sale documentation.
According to State Secretary of Finance Vuk Djokovic, the seven companies will be required to submit binding offers no later than 21 February 2011. If there are several offers, a tender auction will be organized at the end of February.
He stated that the winner will be the company that offers the highest price. The winning firm will have to then obtain the approval of the anti-monopoly commission in Serbia, as well as in Bosnia-Herzegovina and Montenegro where Telekom Srbija has subsidiaries. Djokovic expressed the hope that the entire process could be completed by the end of the first half of 2011.
Serbian government to sell 51% stake in Telekom Srbija
The Serbian government on Oct. 14 decided to sell the 51% state-held stake in telecom operator Telekom Srbija in an international tender.
According to Cabinet officials, Telekom’s worth is estimated at US$3.37 billion and the government will set the minimal price for the sale of company shares.
The evaluation of Telekom Srbija’s capital was performed by a privatization adviser for the purpose of determining the exact percentage of the portion of capital that will be transferred over to current and former employees.
The government also decided to give free Telekom shares to Serbian citizens and the company’s former and current employees.
The current and former employees will be at liberty to shares equaling the maximum amount of up to 6.52% of the company’s estimated value. According to the government’s decision, the citizens who are entitled to the free shares of public companies will get 15% of Telekom shares.
Serbia plans US$2.25 billion telecom stake sale
Serbia is planning to sell half of its stake in Telekom Srbija to other European phone companies. The government is seeking as a minimum US$2.25 billion from the sale. Serbia has applied to become a member of the European Union, but needs to reduce state debt and to attract foreign investment
Telekom Srbija is 20% owned by Greece’s OTE, which itself is 30% owned by Deutsche Telekom. The sale will comprise of 50% stake and one share of the equity. It would be the largest Serbian government asset sale until now.
Telekom Austria, Deutsche Telekom and France Telecom are likely to bid for the Serbian state phone company. The sale possibly will be completed by the first quarter of 2011.
Ratel rules on Telekom Srbija- Telenor agreement (Serbia)
www.WirelessFederation.com/news: The terms and price at which Telekom Srbija will lease its infrastructure to newly licensed Telenor has been decided by Serbian telecoms regulator Ratel.
No agreement was reached by Telenor with Telekom Srbija regarding the price for access to its network, after the Norwegian company was awarded the country’s second fixed line operator license late last year. This called for an intervention by the regulator to mediate an agreement.
The terms and prices for fixed interconnection services, call scheduling, access points and lines for interconnection, as well as access to the telecoms infrastructure has been set in the Ratel’s decision.
Orascom interested in Telekom Srbija privatization
www.WirelessFederation.com/news: Orascom Telecom Holding has expressed its interest in the privatization of Telekom Srbija. Belgrade confirmed the plan in March to auction a 40% stake in the telco in September 2010.
Government plan to list 15% of the company on the local bourse with a further 5% going to current and past employees has also been revealed.
A tender to select an adviser for the sale had been announced by Serbia’s finance ministry in April. As a criteria it opined that the adviser must be an investment bank (or a consortium comprising an investment bank) which has handled the sale of a telecoms company from Europe, the Middle East or the Commonwealth of Independent States in the last three years worth at least EUR500 million.
In the tender that closed on the May 10, 2010 Citigroup was reportedly the sole bidder. According to the Serbian government, it believes its 80% stake to be worth around EUR2.5 billion, which if correct would mean that it is expecting to raise around EUR1.25 billion when the sale takes place.
Deutsche Telekom plans to veto Serbian bids
www.WirelessFederation.com/news: The proposal for the privatization of Telekom Srbija has been planned to be vetoed by Deutsche Telekom in order to gradually increase its stake in the telco.
According to Milorad Joksimovic, president of the Telekom Trade Union, a proposed sale of 40% of the national carrier would be unsuccessful, because Deutsche Telekom was keen to ensure no other player held a stake larger than its current 20% share.
He has called for the postponement of the proposed sale until the telco can pay off debts of €630 million owed to Citigroup Global Markets. An offer for the 40% stake has already been submitted. The buyer would immediately gain control over the state telco if the sale goes ahead with the Serbian government, Deutsche Telkom, and Greece’s OTE each holding a 20% stake.
