Deutsche Telekom is considering acquisitions in Eastern Europe, specifically in Poland, according to a report in the German edition of the Wall Street Journal. Unnamed people with knowledge of the plans told the publication that the German incumbent is…
Deutsche Telekom is considering acquisitions in Eastern Europe, specifically in Poland, according to a report in the German edition of the Wall Street Journal.
Unnamed people with knowledge of the plans told the publication that the German incumbent is working on a takeover of GTS Central Europe.
The transaction would have a deal value of around €600m, the paper reported.
Furthermore, DT is mulling a full takeover of its Czech T-Mobile unit.
DT owns around 60% of the operator, with the remainder owned by Mid Europa Partners. The private equity firm recently put its stake in the business up for sale. DT did not necessarily want to increase its stake, but would be prepared to do so if necessary to avoid a sale to an undesirable player. DT’s preferred option would be for MEP to sell its stake to another PE firm.
With reference to insiders, WSJ said that DT was advised by Credit Suisse and Deutsche Bank, while GTS’ owners, PE firms Columbia Capital, M/C Venture, Innova Capital, HarbourVest, Oak Investment and Bessemer Venture, have hired Goldman Sachs.
According to its website, GTS generated a turnover of €387m in 2012, EBITDA of €103m, and a free cash flow of €53m.
