United Group has announced two separate deals to sell its fixed and broadcast units in Serbia for a combined enterprise value of €1.5 billion ($1.56bn).
The company said it has agreed to sell SBB doo Belgrade to e& PPF Telecom Group BV. SBB offers pay TV, broadband Internet, and fixed telephone services. PPF offers mobile services via its Yettel brand.
United Group has also struck an agreement to sell Eon TV International Ltd (the holding company of the NetTV Plus business) plus its sports broadcasting rights for the Western Balkans (Bosnia and Herzegovina, Montenegro, North Macedonia, and Serbia) to Telekom Srbija a.d. Beograd (TS).
Specifics around the value of each transaction were not disclosed.
According to United Group, it will continue to own and operate its key media outlets in Serbia, including N1 and Nova S. These channels will remain available on SBB’s fixed network and will also be offered to Yettel customers.
United Group said it expects the deals to be completed during the first half of this year, though regulatory approval is required.
Last month, the telco also signed a non-binding agreement with BH Telekom d.d. Sarajevo over a potential sale of Telemach BH d.o.o. Sarajevo and Telemach Crna Gora d.o.o. Podgorica.
“Today’s divestments are in line with our strategy to sharpen our focus on the markets where we can provide the full spectrum of mobile and fixed telecommunication services to our customers, which will enable us to realize the greatest potential for growth and value creation," said Victoriya Boklag, United Group’s CEO.
"By streamlining our operations and refocusing on EU markets, we are enhancing our efficiency and positioning United Group for long-term success.”
The company also noted that upon the completion of the deals, it will have completed its strategic objective of exiting and successfully monetizing its non-EU telco assets.
It was reported last year that Saudi Telecom Company (STC) has been interested in a possible takeover of United Group.
On the telecoms side, United Group operates Serbia Broadband in Serbia; Telemach in Bosnia and Herzegovina, Croatia, Montenegro and Slovenia; Nova in Greece; and Vivacom in Bulgaria.
Notable investors in the company include founder Dragan Šolak, BC Partners, and KKR.
Rival telco PPF Group sold 50 percent plus one share in PPF Telecom Group’s assets in Bulgaria, Hungary, Serbia, and Slovakia, to UAE-based e&, formerly Etisalat, in October in a deal worth €2.15bn ($2.23bn).
