Greek incumbent Hellenic Telecommunications Organization SA (OTE) has confirmed it has agreed to sell its 20% stake in Telecom Srbija back to the state-owned company for €380m. The confirmation follows an earlier preliminary agreement of the…
Greek incumbent Hellenic Telecommunications Organization SA (OTE) has confirmed it has agreed to sell its 20% stake in Telecom Srbija back to the state-owned company for €380m. The confirmation follows an earlier preliminary agreement of the companies, announced before Christmas.
Under the terms of the agreement, subject to the fulfilment of agreed conditions, Athens-based OTE will also receive a minimum dividend of €17m for the fiscal year 2011.
OTE chief executive Michael Tsamaz said in a statement the sale formed part of the company’s wider strategy to reduce net debt. In September last year, the Deutsche Telekom-controlled company reported a net debt of €4.1bn.
OTE said in a statement the transaction is expected to conclude by the end of the first quarter.
Telecom Srbija general manager Branko Radujko said the sale will give the Serbian government total control of the Belgrade-based company, which also operates in Montenegro, Bosnia and Herzegovina and the Bosnian Serb Republic of Srpska.
“A new era lies upon us,” he said.
In December, Telecom Srbija announced its board had approved a loan agreement to fund part of the purchase.
According to Reuters, the sale will enable Belgrade to advance long-delayed plans to find a new investor for the company.
