News


Telekom Austria eyes Serbia Broadband takeover

SBB logoTelekom Austria is reportedly in the running against private equity firms to buy cable operator Serbia Broadband (SBB) for up to €1 billion. 

According to a Bloomberg report, Telekom Austria is back in contention after “dropping off a shortlist” of firms looking at SBB’s accounts.

Other bidders include Providence Equity Partners, Cinven Advisers and Altice Finco, said Bloomberg, citing people with knowledge of the talks.

Telekom Austria would have to sell new shares to fund the purchase and could buy Serbia Broadband, which is owned by private equity firm Mid Europa Partners, for as much as 10 times its estimated EBITDA, the report said.

Announcing its first half and second quarter results earlier this month, Telekom Austria made TV gains but reported a decline in revenues, which it attributed to regulatory burdens, fierce competition and macroeconomic headwinds in CEE.

Telekom Austria is part-owned by Latin American telecom operator América Móvil, which bought a 21% stake in the firm last year. This month América Móvil also announced plans to make a €7.2 billion bid for Dutch operator KPN.