Telekom Srbija group (“Telekom Srbija’) has reached an agreement to purchase 100% of Eon TV International Ltd (the holding company of the NetTV Plus business), the direct-to-home (DTH) business trading as EoNSat and Total TV in Serbia and North Macedonia, as well as certain rights, licenses and other assets relating to the Sport Klub channels in the Western Balkans (Bosnia and Herzegovina, Montenegro, North Macedonia and Serbia), directly and indirectly, from United Group B.V. (“United Group”) for a consideration to 652 million euros, on a cash free and debt free basis.
The acquisition is expected to generate extensive synergies, increase revenues and reduce costs. These transactions are in line with Telekom Srbija’s strategy to build the leading telecom company in the Western Balkans, with revenues reaching three billion euros by 2030. After the successful issuance in 2024 of its 900 million US dollars inaugural Eurobond, today’s purchase of United Group’s assets will further strengthen Telekom Srbija’s positions in the region and with the ex-Yugoslav diaspora.
These transactions are not expected to increase current leverage levels of Telekom Srbija. The closing of the transactions is subject to customary regulatory approvals and are expected to be completed during H1 2025.
Vladimir Lučić, CEO of Telekom Srbija, said: ““Telekom Srbija, as the leading Western Balkans telecom group, is happy to strengthen its offering of direct to home services in Serbia and North Macedonia and its internet TV (IPTV/OTT) offer to the ex-Yugoslav diaspora around the world. We are also reinforcing the variety of sports content accessible to an even larger audience in the Western Balkans. From now on, our subscribers will be able to watch and enjoy both Arena Sport and Sport klub channels.” Lazard acted as financial adviser to Telekom Srbija. Clifford Chance LLP and Gecić Law acted as legal adviser to Telekom Srbija. Kirkland & Ellis LLP acted as legal adviser to United Group.
