Orange takes over 54% in Telekom Romania Communications for EUR 296 mln
Hellenic Telecommunications Organization (OTE) announces that the sale of its 54% stake in Telekom Romania Communications (TKR), the incumbent fixed-line operator formerly known as Romtelecom), to Orange Romania was successfully completed on September 30. The final equity consideration reached EUR 295.6 mln, OTE says.
TKR will continue to provide both support and converged fixed-mobile voice, broadband internet, and television services to its approximately 5 mln customers. It will also manage the network infrastructure, which covers up to 90,000 km of optical fiber, and connects around 3 million households.
Approximately 916,000 customers with mobile services associated with converged contracts will have access, in the coming months, to mobile connectivity in the Orange network.
Mobile services for these customers are provided today by Telekom Romania Mobile (formerly known as Cosmote, owned by OTE) through an MVNO contract with TKR.
Subsequent to the contract with Orange, OTE anticipates distributing to shareholders approximately EUR 174 mln in the form of extraordinary dividends and incremental share buybacks.
The dividend distribution, subject to appropriate corporate approvals, is expected to take place within 2021. OTE’s Chairman and CEO, Michael Tsamaz, said that “the sale of TKR is a strategic decision enabling OTE’s rapid infrastructure rollout in Greece and enhancing its long term growth outlook and shareholder value.
In Romania, it will support the growth of TKR and drive market competitiveness benefiting Romanian customers and society.” OTE remains in the Romanian market with Telekom Romania Mobile Communications (formerly known as Cosmote).