Romanian authorities to talk about Romtelecom listing with majority shareholder OTE
Romanian Communications Minister Valerian Vreme will meet this week with representatives of Greek group OTE, the majority shareholder of telecom operator Romtelecom, for talks on the calendar for the operator’s listing on the Bucharest Stock Exchange.
"The request came from Greek group OTE. We will most likely meet at the end of next week, to discuss the calendar of listing the shares owned by the state in Romtelecom,” Vreme said.
OTE recently decided not to buy out the remaining 46 percent stake in Romanian hard line telephony operator Romtelecom, deeming the moment “inopportune”, due to unfavorable economic conditions in Greece.
Romania wants to sell off its holding in Romtelecom and it had asked OTE to present a buyout offer by end-May. OTE, Greece’s biggest telecom company, owns 54.01 percent in Romtelecom, while the remainder shares are in the ministry’s hands.
Mid-February, the IT&C ministry said it had initiated talks with several investment banks on the possible listing of Romtelecom’s shares. The ministry values its stake in Romtelecom at EUR 1 billion.
Romtelecom is Romania’s largest fixed line telecom operator. The phone company reported revenue of EUR 166.3 million in the first quarter, down 10.9 percent on the year. Earnings before interest, taxes, depreciation and amortization (EBITDA) fell by 62.6 percent to EUR 22.2 million.