Vodafone is the preferred bidder for the sale of 100 percent of Cyta Hellas, parent company Cyprus Telecommunications Authority announced on Friday. The contract for the transaction could possibly be signed even before the first round of the Cypriot presidential elections on January 28.
Sources said that Vodafone offered a price of 117 million euros for the troubled Greek telecom provider, while Wind Hellas, the other interested party, made a bid of around 100 million. The third bidder that expressed an initial interest, China’s PCCW, did not participate in the binding offers stage.
Therefore Cyta is exiting the Greek market with losses, given that its investment exceeded 200 million euros over 10 years. However, the losses would have increased further if the sale was delayed, as the company’s small market share has already started to shrink. Given also the lack of liquidity, it was forced to miss out on the licensing process for VDSL network development.
By incorporating Cyta Hellas, Vodafone will strengthen its position as the second provider of landline services in Greece. It was estimated to have fewer than 700,000 landline subscribers at end-2017, so the addition of Cyta Hellas’s 250,000 will take it close to the 1-million mark.