Croatian incumbent T-Hrvatski Telekom (T-HT) has acquired a 9.23% stake in Optima Telekom (OT) in line with its pre-bankruptcy settlement procedure.
It has also taken over the management of the struggling fixed-line operator.
One of OT’s largest…
Croatian incumbent T-Hrvatski Telekom (T-HT) has acquired a 9.23% stake in Optima Telekom (OT) in line with its pre-bankruptcy settlement procedure.
It has also taken over the management of the struggling fixed-line operator.
One of OT’s largest creditors, T-HT acquired the 5.2 million shares by converting claims into equity, the telco said in a statement.
The pre-bankruptcy settlement procedure has also seen Zagrebacka banka, another OT creditor, convert its management rights in Croatia’s number two fixed-line operator to T-HT, giving the incumbent management control. T-HT represented the majority of members at an OT supervisory board meeting yesterday, at which new board members were appointed, including Zoran Kezman as president.
The incumbent has clearance from the Croatian competition regulator to exercise control over OT for four years as part of its financial and operational restructuring. At the end of the third year, T-HT must launch a sales process for its stake in OT and may also sell shares held by the bank. At the end of the fourth year, T-HT must transfer the management rights either back to the bank or to a third, non-related party and authorise the bank to sell shares.
T-HT noted that it aims to improve OT’s market position and stabilise its financial results to protect the interests of shareholders, customers, other stakeholders and the wider local telecoms sector.
OT’s debt and liquidity issues prompted it to initiate pre-bankruptcy settlement proceedings in 2013. Initially, T-HT wanted to acquire OT and become its “strategic partner”, however the competition regulator blocked the deal as it contended it would significantly boost the incumbent’s market share. OT shareholders approved a revised restructuring plan last October.
