Two Turkish operators are vying for Greek incumbent OTE’s operations in Bulgaria.
Turk Telekom and Turkcell have both published short statements saying they have submitted non-binding bids.
Turkcell announced late yesterday that it has made an offer…
Two Turkish operators are vying for Greek incumbent OTE’s operations in Bulgaria.
Turk Telekom and Turkcell have both published short statements saying they have submitted non-binding bids.
Turkcell announced late yesterday that it has made an offer to take over Cosmo Bulgaria Mobile (Globul) as part of its “ongoing evaluation and analysis of investment opportunities in various countries”.
This morning, Turk Telekom disclosed that it has offered to buy 100% of the shares of both Globul and retailer Germanos Telecom Bulgaria as part of its international expansion plans.
A spokesperson for Deutsche Telekom, which had been mentioned as a potential buyer previously, declined to comment.
OTE is selling the Bulgarian businesses, along with satellite unit Hellas Sat, to address €3.4bn (US$4.3bn) of debt set to mature within the next two years. Last month CEO and chairman Michael Tsamaz, speaking on a conference call with analysts, declined to name a purchase price, saying it will be determined by the bidding process and the usual relevant factors.
Previous reports have stated OTE hopes to raise about €1bn from the sale of Globul – Bulgaria’s second largest mobile operator – and Hellas Sat.
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.
The Hellenic Republic and Deutsche Telekom together own 50% of OTE, with the remaining shares held by international institutional investors (28.9%), Greek institutional invests (11.2%) and other shareholders (9.9%).
