OTE sells its stake in Telekom Romania
The Greek telecommunications organization (OTE) announced on Thursday that it had sold its 54% stake in Telekom Romania Communications to Orange Romania.
He announced that the final equity consideration was € 295.6 million ($ 341 million).
TAKES AWAY indicates that it plans to distribute around 174 million euros to shareholders, in the form of an exceptional dividend and progressive share buybacks. The distribution of the dividend, subject to appropriate company approvals, is expected to take place by 2021.
OTE Chairman and CEO Michael Tsamaz said: “The sale of Telekom Romania Fixed is a strategic decision enabling the rapid deployment of OTE’s infrastructure in Greece and improving its long-term growth prospects and shareholder value. In Romania, it will support the growth of Telekom Romania Fixed and boost market competitiveness for the benefit of Romanian customers and society.
“OTE remains present in the Romanian market with Telekom Romania Mobile, targeting the generation of positive cash flow through a redesigned market approach. It is therefore a transaction that benefits all parties involved. I would like to thank the management and employees of Telekom Romania for all the achievements of the company to date and wish them a prosperous future.
OTE is the largest tech company in Greece
OTE is Greece’s largest tech company. It is one of the three largest companies listed on the Athens Stock Exchange, by market capitalization.
It offers fixed and mobile telephony services, broadband services, pay television and integrated information and communication technologies (ICT).
At the same time, the Group is involved in various activities, in particular satellite communications, real estate and vocational training. Formerly a state monopoly, the privatization of OTE began in 1996 and is now listed on the Athens and London stock exchanges.
The OTE group employs around 13,000 people in Greece and around 20,000 in total.
Deutsche Telekom becomes main shareholder
Since July 2009, Deutsche Telekom has been the company’s main shareholder. In 2018, the German telecommunications giant acquired the remaining 5% of OTE. This decision was part of the privatization campaign in Greece.
OTE Group owns the largest fiber optic network in Greece, COSMOTE Fiber, which enables over 77% of the population to have access to internet speeds of 100 Mbit / s or more.
By the end of 2020, OTE achieved its ambitious expansion target, covering more than 300,000 households, and is on track to reach around 500,000 households by the end of 2021.
Also in the field of mobile telephony, the company is breaking new ground as COSMOTE became the first mobile operator in Greece to launch 5G services following a series of successful spectrum auctions in December 2020.
The company plans to achieve 5G population coverage of around 50% by the end of 2021 and to cover the national road network by 2023, while continuing to promote the use of data on its 4G network. / 4G + higher.