Croatian incumbent T-Hrvatski Telekom (T-HT) has notified the national competition regulator of its intention to acquire struggling number two fixed-line operator Optima Telekom (OT), currently in a pre-bankruptcy settlement process.
The intended…
Croatian incumbent T-Hrvatski Telekom (T-HT) has notified the national competition regulator of its intention to acquire struggling number two fixed-line operator Optima Telekom (OT), currently in a pre-bankruptcy settlement process.
The intended takeover is based on OT’s recently-published plan for its financial and operational restructuring.
The plan proposes T-HT, as one of OT’s largest creditors, become its strategic partner.
“In light of T-HT’s strengths and competencies in the industry and its business and technology assets, OT regards T-HT as a highly suitable partner and proposes strategic partnership, which it considers to be the only feasible solution in order to maintain its business and prevent bankruptcy,” the incumbent stated in a stock exchange filing.
OT has posted negative financial results since its founding in 2004 despite increasing its customer base.
The telco’s debt and liquidity problems prompted it to initiate pre-bankruptcy settlement proceedings in April this year in an effort to stave off bankruptcy and resume normal business operations.
Despite this, OT reported EBITDA of HRK26.5m for Q1 2013, up 23% from the same period in 2012.