Information on the target
United Group B.V. (“Group”) is the leading telecommunications and media provider in Southeastern Europe, primarily owned by BC Partners, a prominent international investment firm. The Group has recently reached an agreement to divest SBB doo Belgrade, a significant player in the Serbian market offering alternative pay TV, broadband internet, and fixed telephone services. Additionally, the Group has agreed to sell its NetTV Plus business and its sports broadcasting rights for the Western Balkans to Telekom Srbija a.d. Beograd (“TS”). The total Enterprise Value of these transactions is estimated at €1.5 billion, reflecting an implied EV/2024 EBITDAal (pre IFRS 16) of 10x.
These strategic divestments highlight United Group's robust track record of developing market-leading operations and brands across the region over the past two decades. Following the completion of these transactions, United Group will have successfully exited its telecommunications assets outside the EU, aligning with its long-term strategic objectives.
Industry overview in the target’s specific country
The telecommunications and media industry in Serbia has experienced significant growth and transformation over the past few years. With a population increasingly reliant on digital connectivity, the demand for high-quality telecommunications services has surged. The market is characterized by a competitive landscape, with several players vying for market share in pay TV, broadband, and mobile services. This competition has driven innovation and improvements in service delivery, benefiting consumers.
Serbia's telecommunications sector is undergoing a digital revolution, with investments in infrastructure such as fiber-optic networks and 5G technology. The government has also been supportive of initiatives aimed at enhancing connectivity and expanding access to digital services. As a result, the country is witnessing a shift towards more integrated and converged services, allowing providers to offer bundled packages that include mobile, broadband, and television services.
Moreover, the regulatory environment in Serbia is evolving, with authorities working to create a more conducive atmosphere for investment and competition. This has led to increased foreign interest in the market, as international players recognize the growth potential within the region. The combination of a growing consumer base, technological advancements, and favorable regulatory developments positions Serbia as an attractive market for telecommunications and media investments.
The rationale behind the deal The rationale behind United Group's decision to divest its Serbian assets is rooted in a strategic focus on enhancing its operations within the European Union. By streamlining its portfolio and concentrating on markets where it can deliver a full spectrum of telecommunic…