Package of stocks of Montenegrin M:tel worth up to 10.5m EUR - appraisal by Advantis Broker

- Telekom Srpske should set aside up to 10.5m EUR for procurement of the minority package of stocks of Montenegrin M:tel - Banjaluka-based Advantis Broker estimated.

- People from that broker company say that, after the news was announced that Telekom Srpske wanted to take over 49% of stocks of M:tel, they did the analysis, based on which they determined the fair value of the package of stocks of that Montenegrin telecommunications operator - daily newspaper Nezavisne Novine announced.

- Taking in concern the prospects of the telecommunications market in Montenegro, we are of the opinion that the fair value of the package of stocks of 49% should be between 8.5 and 10.5m EUR - people from Advantis Broker told Nezavisne Novine.

People in that broker company point out that they neither spoke to the management nor carried out in-depth survey of M:tel during the work on the analysis.

The management of Telekom Srpske announced on the last day of year 2009 that the negotiations on purchase of 49% of stocks of Podgorica-based M:tel were underway. The owner of that package of stocks is company Ogalar B.V. from Netherlands, of which owner is Serbian businessman Miroslav Mišković, and the majority stockholder of both telecom operators is Telekom Srbija.

Saying that aforementioned transaction should be carried out in the first half of this year, people in Advantis Broker believe that that may have negative implications on the expected payment of dividends for year 2009, "which will probably affect the mood of investors towards the stocks of Telekom Srpske.

Advantis, which estimated the price of stocks of Telekom Srpske at 0.75 EUR and announced that in April 2009 on financial service Bloomberg, thus recommending investors to buy them, has now changed the recommendation, in the light of new circumstances, into "don't change the position".