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Telekom Srbija buys back OTE stake
03 January 2012
Serbian operator signs agreement to buy back 20% stake from Greece’s OTE for €380m
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Serbia
Telekom Srbija
OTE
Telekom Austria
Telekom Srbija has entered an agreement to buy back Greek operator OTE’s 20% stake in the Serbian firm for €380 million. The transaction is expected to be completed by the first quarter of 2012, following which Telekom Srbija will once again become a state controlled operator.
Michael Tsamaz, chairman and CEO of OTE, said: “I would like to thank Telekom Srbija’s management and employees for the company’s accomplishments to date as well as the good cooperation with the OTE group. The sale of Telekom Srbija will have a positive impact on our cash flow and is part of our strategy to reduce OTE’s net debt.”
The Serbian government tried to sell control of Telekom Srbija in 2011, but potential purchasers — principally the Telekom Austria group — withdrew because they did not agree with the government’s valuation.
Under Telekom Srbija’s profit distribution agreements, OTE is to receive a dividend of €17 million for 2011, and the Serbian government will receive €68 million. GTB
Further reading from Global Telecoms Business:
Serbia to buy back OTE 20% in Telekom Srbija 07 Dec 2011
Telekom Austria says no to more acquisitions 24 Aug 2011
Telekom Serbia sues Serbian regulator 22 Aug 2011
Serbia extends Telekom Srbija sale deadline 13 Apr 2011
Telekom Austria bids for Serbia stake 22 Mar 2011