The upcoming sale of Telekom Srbija is not something that has universal support in Serbia.
Far from it, in fact, with objections coming from ordinary citizens right up to such bodies as the country’s Anti-Corruption Council, not to mention opposition politicians and the telco’s own employees.
Indeed, there was a public protest against the privatisation, involving several thousand people, outside the government’s offices in Belgrade only earlier this month.
However, the sale, though unpopular, is now gathering momentum, with the first phase of the process having attracted no fewer than six bids. It has since been reported, though not confirmed, that the highest was from the US investment fund Colbeck Capital, which has offered €1.47 billion for a 58% stake in the company.
This was €170 million more than the next (unnamed) bidder and in line with what the government is seeking, namely more than the €1.4 billion set in 2011, during its first attempt to sell the telco. Then, Telekom Austria was the only interested party and bid €1.1 billion for a lower (51%) stake.
Although the five other companies also seeking to buy Telekom Srbija – they are understood to be Advent International, the EBRD, Mid Europa Partners (MEP), Abu Dhabi Investment Authority and Telekom Slovenije – are still in the picture, if the reports are to be believed Colbeck Capital is now the clear favourite.
On the other hand, the sale could still fall though, or even be scrapped. Ultimately, it will come down to both a political and economic decision by the government.
As for Telekom Srbija itself, union leaders have already expressed fears that should an investment fund buy the company it would cut its staffing levels by up to 50%.
Whatever the outcome of the sale, Telekom Srbija will remain a hugely important player in a telecom market that was worth over €1.5 billion, or 6% of Serbia’s GNP, as of last year.