OTE completes purchase of 30% in former Cosmote

Greek group OTE has completed the acquisition of the rest of 30% stake in Telekom Romania Mobile Communications (TRMC - formerly Cosmote) from Telekom Romania Communications(TRC), thus paving the way for the sale of TRC to Orange.

The price amounted to EUR 58.9 mln, slightly below the previously estimated EUR 59.5 mln, Profit.ro reported.

The deal involving the 30% stake in TRMC still not owned by OTE was requested by the European Commission as a condition for approving the sale of Telekom Romania Communications to Orange. Or else, Orange would have gained excessive power in the mobile telecom market, the EC argued.

The European Commission approved conditionally, in July, the sale of the 54% stake held by OTE in Telekom Romania Communications, Telekom's fixed networks division, to Orange Romania. The rest of 46% in TRM is owned by the Romanian state.

The total economic value of the company was estimated at EUR 497 mln (100% share), including the fixed-mobile converged customer base.

This corresponds to a purchase price to be paid by Orange of EUR 268 mln, adjusted for the excess or deficit of net cash and considering the adjustments that normally take place at the end of the transaction.

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