United Group has entered into a EUR 1.5 billion agreement to sell several significant assets to e& PPF Telecom Group and Telekom Srbija, marking a major shift in the company’s strategy.
The deal includes the sale of SBB doo Belgrade, a leading provider of pay TV, broadband internet, and fixed telephone services in Serbia, to e& PPF Telecom Group. United Group will also divest Eon TV International, the holding company of NetTV Plus, as well as its sports broadcasting rights for the Western Balkans, which cover Bosnia and Herzegovina, Montenegro, North Macedonia, and Serbia, to Telekom Srbija.
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Key Transactions in the Balkans
These transactions, which carry an enterprise value of EUR 1.5 billion and an implied EV/2024 EBITDA multiple of 10x, highlight United Group’s strong legacy in building top-performing brands and operations across Southeastern Europe over the last two decades.
Despite the divestments, United Group will retain ownership of key media properties in Serbia, including N1 and Nova S. These channels will remain available through SBB’s fixed network and will also be accessible to Yettel customers.
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Strategic Shift Toward EU Markets
The transactions, pending customary regulatory approvals, are expected to be finalized by mid-2025. Additionally, United Group has signed a non-binding agreement with BH Telekom for the potential sale of Telemach BH d.o.o. Sarajevo and Telemach Crna Gora d.o.o. Podgorica, a deal that is set to conclude following the successful completion of the transactions with e& PPF Telecom, Telekom Srbija, and BH Telekom.
This series of divestitures marks the culmination of United Group’s strategy to exit and monetize its non-EU telecom assets. With no further divestments planned in the immediate future, the company’s focus will shift entirely to its core operations within the European Union.
Victoriya Boklag, CEO of United Group, stated, “Our Group was built on the foundation of SBB almost 24 years ago and grew into the largest telco and media company in our region. Since its inception, United Group has expanded rapidly across Southeastern Europe through successful completion of over 100 M&A transactions and has significantly strengthened its EU positioning since its first EU foray into the Slovenian market in 2009.
“Today’s divestments are in line with our strategy to sharpen our focus on the markets where we can provide the full spectrum of mobile and fixed telecommunication services to our customers, which will enable us to realize the greatest potential for growth and value creation. By streamlining our operations and refocusing on EU markets, we are enhancing our efficiency and positioning United Group for long-term success.”
This move aligns with United Group’s objective to concentrate on its EU-based operations, enhancing its long-term growth prospects while simplifying its portfolio.
