Serbia Planning Privatisation of GSM Network

The Serbian Privatisation Agency and telecoms regulator, the Republic Agency for Telecommunications have announced plans for a GSM/3G License tender and the linked privatisation of the GSM network operator, Mobi 63. The Privatization Agency says that it is planning to sell 70% of the network operator equity. A consortium of advisers led by Rothschild & Cie. and Citadel Financial Advisory is assisting the Agencies in conducting the Tender.

Mobi 63 is the new name of the Mobtel company, which was confiscated from the BK Trade company and is now 70% owned by the Serbian Government and 30% by a group of private Austrian investors through Holdenhurst Holding. The Company does not technically have an operating license, hence the GSM license tender - and the buyer will have the obligation to take on employees of the previous mobile operator.

Holdenhurst will also sell its entire 30% equity stake in Mobi 63 at the same time, if the sale price exceeds US$1.4 billion. There is a minimum tender price of US$1 billion, of which 20% will be for the operating license.

More details from francois.lagree@fr.rothschild.com"

Posted to the site on 4th May 2006