But gains concessions and drops capex commitment
Telekom Austria has upped its offer for control of Telekom Srbjia from €800 million to €1.1 billion, but dropped a commitment to invest €450 over three years following the acquisition. The company has also gained concessions from Serbia’s Ministry of Finance relating to spectrum agreements and extensions to licenses.
Telekom Austria’s initial offer, made in March 2011, was for an equity value of €800-950 million, with a commitment to invest €450 million over a three year period.
An agreement to “address the company’s cost structure” within an agreed period of time of the acquisition will remain, as part of the new bid.
In 2010, Telekom Srbija reported revenues of EUR1.14 billion and generated an EBITDA of EUR 483 million.
Telekom Srbija is the incumbent operator of the Republic of Serbia with operations in Montenegro and Bosnia Herzegovina, where Telekom Srbija owns a 65% stake in Telekom Srpske. In the Republic of Serbia, the company offers both fixed net and mobile communication services with a 100% market share in the fixed net segment and a 56% market share in mobile communication. In Montenegro, the mobile market share of Telekom Srbija amounts to 23%, while the company’s fixed net operations account for a 2% market share. In Bosnia Herzegovina, the fixed net market share corresponds to 35% and the mobile communication market share to 39.7%.