KKR's United Group reportedly in talks to acquire Bosnia's M&H Company for EUR 23mn

By bne IntelliNews September 3, 2014

KKR's United Group, South East Europe’s leading regional pay TV platform, is in talks to acquire Sarajevo-based telecommunications firm M&H Company, Bosnian TV channel TeVe.ba reported on Sept 3, quoting a KKR statement.

KKR has informed it is providing its full support to its Telemach unit in Bosnia in the endeavour to take over M&H Company.

"Such investments provide direct benefits to the citizens via creating jobs and enhancing the quality of services, and also serve as an example to other foreign investors who consider investing in Bosnia and Herzegovina," the head of KKR's technology and communications team in Europe, Henrik Kraft, was quoted as saying in the statement.

The statement also said that the proposed merger, even though small as a share of the Bosnian telecommunications market (less that 5%), will create a valuable private company that could compete with the existing mobile, fixed-line, TV and internet operators in terms of technology, coverage, quality and prices.

Even though there has been no official information on the price of the merger, TeVe.ba has reported earlier the transaction is seen at some EUR 23mn. It is a subject to approval by the Bosnian regulators.

Privately-held M&H Company is reportedly one of the best telecommunications firms in Bosnia. It posted a BAM 4mn (EUR 2mn) profit for 2013, TeVe.ba said.

United Group operates in Southeast Europe under the SBB and Telemach brands. The group includes the largest cable operator in Serbia - SBB and the largest cable operator in Slovenia and Bosnia - Telemach, along with another 15 smaller firms.

As part of its expansion in the region, United Group reached in July an agreement to take over a majority stake in the first Montenegrin cable operator - Broadband Montenegro (BBM).

United Group already serves 1.89 million customers across the six markets of former Yugoslavia with a combined population of over 20 million. The group is also is in the final stages of launching a new news TV station in the Balkans region, to be called N1.

KKR wrapped up in March the EUR 1bn acquisition of the United Group from its peer Mid Europa Partners. The EBRD co-invested EUR 50mn alongside KKR in the transaction.

Related Articles

Republika Srpska president reportedly to face charges over banned referendum

A well known Bosnian political blogger has claimed that Republika Srpska’s President Milorad Dodik and the entity’s Prime Minister Zeljka Cvijanovic will face charges over the 2016 referendum ... more

Former Bosnian minister wanted in organised crime case now on the run

A Sarajevo court has called for an international arrest warrant to be issued for former Interior Minister Alija Delimustafic, who is understood to be in hiding after being ordered to return to police ... more

Bosnia to expel more than 300 foreign property owners for tax evasion

Bosnia & Herzegovina will expel more than 300 foreigners, mainly from the Gulf, on suspicion of evading taxes on their investment properties, Reuters reported on December 14, quoting the ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss