Telekom looking for bank takeover

5 Dec 2014

State-owned provider Telekom Srbija has filed an offer for the acquisition of Dunav Banka, paving the way for the operator to launch mobile banking services, SeeNews writes. Provided its offer is accepted by the bank’s major shareholders – insurance firms Dunav Osiguranje (58.7%) and Dunav Re (13.8%) – Telekom Srbija will become the majority shareholder in Dunav Banka, although the deal also needs to receive approval from the National Bank of Serbia and the competition regulator. Telekom has proposed to enter the shareholding structure of the bank via a capital increase, in which existing shareholders will not be eligible to participate. Dunav Banka will put the matter to a vote at an extraordinary shareholder assembly on 19 December. Should it prove successful, Telekom, which operates in the wireless market via its Mobile Telephony of Serbia (MTS) unit, plans to develop mobile banking services, including mobile payments and money transfer.

According to TeleGeography’s GlobalComms Database, Telenor Serbia launched Telenor Banka in September 2014. MTS’s Norwegian-backed rival had agreed to purchase 100% of KBC Banka in April 2013 but it was not until December that year that the transaction was green-lit by the authorities and the deal finally closed.

Serbia, Telekom Srbija (MTS)