The sale price of Telekom Serbija has been increased by the recent progress in talks between Serbia and Kosovo, claimed Rasim Ljajic, Serbia's Minister of Trade, Tourism and Telecommunications, press agency Tanjug reports.

The price is expected to rise because the new owner of Telekom Serbija will be able to extend its operation to Kosovo and gain 2mn more potential users, since according to the agreements reached in Brussels in late August, it will also have a operating licence there.

The Serbian telco’s subsidiary in Kosovo, which is about to be registered, will get a temporary licence for mobile operations, while as for obtaining a permanent licence, it will have to participate in a tender as per international regulations, which is expected to be held in 2017.

Ljajic confirmed that eight bidders had completed the qualifying conditions for the tender for the state’s 58.11% stake and that binding bids were due in November. On July 3 Serbia’s privatisation agency had invited interested parties with assets worth at least €2bn or revenues of more than €500m to submit non-binding offers.

The company owns 20% of its own shares and the rest belonging to small shareholders and to current and former employees.

Telekom Srbija operates in Serbia, Bosnia and Herzegovina and Montenegro as the owner of Montenegrin mobile operator m:tel and it is the majority owner of Telekom Srpske, Bosnia’s second-largest telecommunications company.