Greek telco OTE has hired Citi for the sale of Bulgarian mobile unit Globul.
During a conference call on the group’s third-quarter results, OTE CEO and chairman Michael Tsamaz confirmed Citi is managing the sales process, which is already underway….
Greek telco OTE has hired Citi for the sale of Bulgarian mobile unit Globul.
During a conference call on the group’s third-quarter results, OTE CEO and chairman Michael Tsamaz confirmed Citi is managing the sales process, which is already underway. However, no binding bids have yet been received.
Asked about Globul’s purchase price, Tsamaz said it will be determined by the bidding process. The company’s results, market conditions and previous similar transactions will also influence the price, he added.
Tsamaz also confirmed the sales process for satellite unit Hellas Sat is ongoing, but did not elaborate further.
OTE is selling the assets as part of comprehensive plans to cut debt that totalled €4.076bn at the end of the third quarter, down 21.4% from €5.187bn in Q3 2011. Underlying net debt for Q3 2012 stood at €2.988bn, down 25.6% from the Q3 2011 result of €4.016bn.
Previous reports have stated OTE hopes to raise about €1bn from the sales of Globul and Hellas Sat.
The asset disposals form part of what the company described today as “an integrated plan” to meet August 2015 debt obligations.
Extends €500m debt facility
OTE will also extend €500m of an existing €900m syndicated bond loan revolving credit facility by one year, delaying final repayment until 11 February 2014. The telco said it has also repurchased a total €210m of its August 2013 notes at market values. OTE also announced its board of directors has approved a voluntary exit scheme for about 1,200 fixed-line employees, whom the company claimed are mostly close to retirement age.
Tsamaz said the company is also in negotiations – some advanced – with financial institutions about other debt refinancing measures, but declined to provide further details before formal agreements are reached.
Globul had about 4.4 million customers at the end of Q3, up 6.6% on the Q3 2011 result. The Bulgarian business posted revenues for the quarter of 85.9m, down 20.9% from the Q3 2011 result of €108.6m. The pro-forma EBITDA margin was 34m, down 17.3% from 41.1m in Q3 2011. The pro-forma EBIITDA margin was 39.6%, compared with 37.8% in Q3 last year.
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