The Serbian government plans to sell most of its stake in Telekom Srbija to boost the firm’s economic efficiency.
Prime Minister Mirko Cvetkovic said the state would sell 40% of the telco to a strong strategic investor that will fund investment in new technologies and services required to help keep the firm competitive.
The government will retain a 20% stake, he said in an interview with local press, transcribed on the government’s website.
“In economics it goes without saying that private property is more efficient than state property,” Cvetkovic said.
An international auction will be conducted to find the new partner. Cvetkovic admitted the government had not consulted with Deutsche Telekom, which currently holds a 20% stake in the Serbian telco.
Selling the firm is part of Cvetkovic’s vision for a free economy in Serbia. He said any objections to the sale were for political, rather than economic, reasons.