Telecom Srbija (TS) has confirmed it has re-acquired Greek telecom operator OTE’s 20% stake for €380m, meaning the former monopoly is again 100% state-owned.
Directors general of both companies signed the share repurchase contract at an event…
Telecom Srbija (TS) has confirmed it has re-acquired Greek telecom operator OTE’s 20% stake for €380m, meaning the former monopoly is again 100% state-owned.
Directors general of both companies signed the share repurchase contract at an event attended by Serbian President Boris Tadic and Prime Minister Mirko Cvetkovic.
The Serbian government is now the registered owner of 80% of TS’ shares, while the remaining 20% rest with the company itself.
TS confirmed a €320m loan and €60m of company revenue will finance the purchase.
As previously reported, the terms of the agreement provide that OTE will also receive a minimum dividend of €17m for the fiscal year 2011, subject to certain conditions.
TS announced on 17 January that it had signed a €470m three-year senior term loan with a consortium of 19 banks. The company said €320m of the facility would fund the share buyback, while the remaining €150m would be used to refinance existing debt.
