KRNETA: The model of initial public offering a good option for Telekom Srbija

Sinisa Krneta (Photo: YouTube/screenshot)

- This way, Telekom might collect the assets on the market for financing the investments in the growth and the development. Our Telekom already has strong competition and needs large amounts of money to be able to play the market game and follow the trends in technological development – he explained.

The state doesn’t need to give up the ownership of Telekom completely. On the contrary, as he says, the Belgrade Stock Exchange considers the partial waiving of the ownership, that is, the sale of minority participations and the approach to privatization through phases, the best solution. This was recognized in mid-1970s by the German Government, which was the 100% owner of Deutsche telekom.

- Block of shares were being marketed in phases, and new shares were being issued through which new investors arrived to Deutche telekom, which still remained minority owners relative to the state – he stated.

Krneta added that “the fear that, in marketing shares, there might be a drop in prices and, as a consequence, the drop in the total value of the company is fully justified, if this is caused by internal or external factors like technological crises. But the planetary stock exchange practice shows that the effects of these factors can’t be avoided, even if you’re not in the market”.