Government to sell 51% stake in Telekom Srbija

The Serbian government on Oct. 14 decided to sell the 51 percent state-held stake in telecom operator Telekom Srbija in an international tender. Cabinet officials told BETA that Telekom's worth is estimated at EUR2.43 billion and the government will set the minimal price for the sale of company shares.

The evaluation of Telekom Srbija's capital was carried out 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 entitled to shares equaling the maximum amount of up to 6.52 percent 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 percent of Telekom shares. Telekom Srbija posted a profit of RSD13.3 billion in 2009, which made it the company with the highest net income in the Serbian market.

News source: EMG.rs link: article