Greek telco OTE has completed the sale of Bulgarian mobile unit Globul and integrated retailer Germanos Telecom to Norway’s Telenor for €717m (US$949.3m) on a cash and debt-free basis.
Announcing the completion today, which follows the requisite…
Greek telco OTE has completed the sale of Bulgarian mobile unit Globul and integrated retailer Germanos Telecom to Norway’s Telenor for €717m (US$949.3m) on a cash and debt-free basis.
Announcing the completion today, which follows the requisite approvals, OTE said the deal value reflects a multiple of 6 times the estimated 2013 EBITDA.
OTE CFO Babis Mazarakis said the successful completion at an “optimum price” marks a significant step in the group’s refinancing strategy and ensures Globul’s continued positive performance.
The Greek telco has consequently reduced its net debt to less than €2bn – more than half the total at the start of 2011.
“We remain focused on generating strong cash flows to secure the achievement of the group’s business goals,” he said.
Oslo-based Telenor agreed to buy Globul and Germanos in late April, and subsequently issued a bond worth about US$1.35bn to support the buyout.
The European Commission cleared the deal in early July. Shortly after, Telenor named Stein-Erik Vellan as the incoming CEO, saying he would be formally appointed when the deal is finalised.
The Norwegian operator said in a stock exchange filing today that Globul will be consolidated within the group from tomorrow (1 August).
Present in Bulgaria since 2001, Globul reported 4.5 million subscribers at the end of 2012. Together, the mobile operator and Germanos generated revenues in 2012 of €378m and EBITDA of €135m.
Telenor’s other CEE operations are in Hungary, Montenegro and Serbia.
