Two banks vie to advise on Telekom Srbija IPO

15 Sep 2008

Serbia’s privatisation authority has confirmed that Morgan Stanley and a consortium led by JP Morgan will compete to become the financial advisor for the initial public offering (IPO) of fixed line telecoms monopoly Telekom Srbija. ‘The final decision will be made next week,’ Nebojsa Ciric, the president of the tender commission, said on Friday. In a financial bid that was opened on Friday, Morgan Stanley requested a 1.19% fee after the whole transaction is completed, in addition to a EUR250,000 fee. JP Morgan, meanwhile, is reported to have demanded a 1.35% fee.

The tender for the financial advisor to Telekom Srbija was announced in January this year and Belgrade hopes to launch the IPO on the local stock market by mid-2009. Telekom Srbija owns a 65% stake in Bosnia’s second-largest operator Telekom Srpske and has a licence to launch a mobile operation in Montenegro. The total value of the firm has never been disclosed, but analysts estimate it at more than EUR2 billion (USD2.8 billion).

Serbia, Telekom Srbija (MTS)