After Telemach sale announcement, Serbia's largest cable operator also sold, Sportklub now owned by...

(Patria) - United Group announced that it has reached an agreement to sell the company SBB to the "e& PPF Telecom" group. It was also announced that United Group sold the EON and Net TV Plus platforms and rights to sports broadcasts of Sport Klub to Telekom Srbija.

The announcement states that an agreement has been reached to sell the company SBB, which is involved in cable television distribution, to the "e& PPF Telecom" group.

It was also announced that the EON, Net TV Plus, and Total TV platforms, as well as the rights to sports broadcasts for the Western Balkans aired on Sport Klub channels, have been sold to Telekom Srbija.

"United Group will continue to own and manage its key media houses in Serbia, including N1 and Nova. These channels will remain available on the SBB fixed network and will also be offered to Yettel users," the statement reads.

The production companies "Grand" and "IDJ" will continue to operate within the United Group, the group added, stating that there are no negotiations or plans to sell any media house from the "United Group".

"The only change in the company's portfolio, due to the loss of exclusive rights for major sports competitions, relates to the Sport Klub Srbija sports channel. Existing rights to Sport Klub sports broadcasts will henceforth transfer to Arena Group. This move became the only sustainable business solution due to the inability to provide viewers in Serbia with television broadcasts of elite sports championships," stated "United Group".

They added that the Sport Klub web portal will continue to operate, and that the channel's journalists will prepare sports content for "United Media" channels.

Telekom Srbija Group has reached an agreement to purchase 100 percent of the shares in Eon TV International Ltd (holding company of Net TV Plus), the direct-to-home (DTH) business within "EoNSat" and "Total TV" in Serbia and North Macedonia, as well as the purchase of certain rights, licenses, and other assets related to Sport Klub channels for the Western Balkans (BiH, Montenegro, North Macedonia, and Serbia), directly or indirectly, from United Group B.V. ("United Group") for a consideration of EUR 652 million, cash-free and debt-free, the statement said.

This acquisition is expected to create broad synergies, increase revenues, and reduce costs.

These transactions are aligned with Telekom Srbija's strategy to build a leading telecommunications company in the Western Balkans, with revenues reaching three billion euros by 2030.

Following the successful premiere issuance of Euro bonds in 2024, amounting to USD 900 million, today's purchase of United Group assets will further strengthen Telekom Srbija's position in the region and among the diaspora of former Yugoslavia, the statement emphasizes.

These transactions are not expected to increase Telekom Srbija's current debt levels.

The closing of the transactions is subject to customary regulatory approvals and is expected to be completed during the first half of 2025.

"Telekom Srbija, as the leading telecommunications group in the Western Balkans, looks forward to the opportunity to strengthen its DTH and internet TV (IPTV/OTT) service offerings for the diaspora market of former Yugoslavia. We are also increasing the diversity of sports content that will be available to an even wider audience in the Western Balkans. From now on, our subscribers will be able to watch and enjoy both Arena Sport and Sport Klub channels," said the CEO of Telekom Srbija, Vladimir Lučić.

Lazard was the financial advisor to Telekom Srbija, while Clifford Chance LLP and Gecić Law law firm were legal advisors to Telekom Srbija, and Kirkland & Ellis LLP was the legal advisor to United Group, the statement added.

Let us recall that the largest cable operator in BiH, Telemach, is also being sold, and BH Telecom has expressed its intention to acquire Telemach.