The Greek government has exercised a put option to sell a further 10 per cent of its shares in incumbent OTE to German incumbent Deutsche Telekom (DT) for around E400m on June 6. After the transaction, which involves around 49 million shares, DT will own…
The Greek government has exercised a put option to sell a further 10 per cent of its shares in incumbent OTE to German incumbent Deutsche Telekom (DT) for around E400m on June 6. After the transaction, which involves around 49 million shares, DT will own 40 per cent plus one share of the Greek operator’s voting rights, while the Greek government will own 10 per cent plus one vote.
Back in May, reports had suggested that DT was trying to stall its obligatory acquisition of this further 10 per cent shareholding, or looking for more leeway to reorganise OTE’s fixed-line operations before acquiring the government stake.
In May 2008, DT acquired a stake of 25 per cent plus one share in OTE, in a deal that granted the government two put options to sell further stakes in the company. Using the first option, the state sold a five per cent stake to DT earlier this year.
The state has indicated plans to sell down its entire 20 per cent stake in OTE by the end of Q2 2011. As well as exercising the 10 per cent put option with DT, it is also transferring a four per cent stake to the country’s pension fund.
