Mid Europa's Serbia Broadband attracts private equity interest

Providence Equity Partners and Cinven are reported to have expressed an interest in the firm, which could raise up to €1bn according to market estimates. 

Telecommunications firm Telekom Austria is also reported to be circling the firm. The firm currently owns mobile operators in Serbia, Croatia, Bulgaria and Slovenia. 

Mid Europa Partners bought a controlling stake in the asset from Bedminster Capital Management in 2007. The vendor re-invested to retain a minority stake.

Deal value remained undisclosed but was understood to stand at €170-200m. Unicredit Bank Austria acted as sole underwriter and lead arranger of the €81m debt package, which included a €63m senior debt tranche with the remainder formed of mezzanine financing. The deal was the first leveraged buyout completed in Serbia. 

In 2012, the GP merged Serbia Broadband and Slovenian telecoms firm Telemach Group, refinancing the group with €333m of senior debt. Financing for the transaction was provided by BNP Paribas, Erste Group Bank, ING Bank and Unicredit, all of which acted as co-ordinators and mandated lead arrangers (MLAs). Banca IMI, Credit Agricole CIB, Raiffeisen Bank International and Société Générale also acted as MLAs.

SBB was founded in Belgrade in 2002. It is a provider of digital and analogue cable television and broadband internet in Serbia, as well as satellite television across six countries in south-east Europe. The company employs more than 900 people.

All parties declined to comment. 

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• CEE
• Buyouts
• Exits
• Serbia
• Mid Europa Partners