Monday September 1, 2014 Search
Weather | Athens
29o C
23o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Telenor buys OTE telecoms' Bulgarian mobile unit Globul for 717 million euros

By Adam Ewing

Telenor ASA (TEL), the Nordic regionís largest telecommunications operator, agreed to buy Hellenic Telecommunications Organization's (OTE) Bulgarian mobile unit for 717 million euros ($934 million).

Telenorís acquisition of Globul, the second-largest mobile carrier in Bulgaria with a 36 percent share of the market, allows the Fornebu, Norway-based operator to grow its presence in central and eastern Europe, while enabling the Athens-based operator to reduce costs. Germanyís Deutsche Telekom AG (DTE), which holds a 40 percent stake in OTE, considered aiding the unit in August. The deal will be finalized in the third quarter.

Telenor, which generated 58 percent of its revenue outside Norway, Sweden and Denmark last year, has continued to push into faster-growing countries in Europe and Asia to boost sales. The carrier already operates in Hungary, Serbia, Montenegro as well as Thailand and Malaysia.

ďBased on our experience in Telenorís well-performing operations in the region, we strongly believe that we will be able to create value in the Bulgarian market,Ē Telenor Chief Executive Officer Jon Fredrik Baksaas said in an April 26 statement.

OTE, Greeceís second-biggest company by market value, has cut staff and sold international assets to reduce debt as the nationís recession damps demand for its products. In January, the company issued 700 million euros of five-year bonds to redeem more than 1 billion euros of notes due this year and next. Demand for those notes exceeded supply, with OTE Chief Executive Officer Michael Tsamaz calling it a ďvote of confidenceĒ in the company.

Globul has been in Bulgaria since 2001, Telenor said. At the end of 2012, the carrier had 4.5 million subscribers. The company, along with OTEís Germanos Bulgaria unit, had revenue of 378 million euros and earnings before interest, taxes, depreciation and amortization of 135 million euros.

OTE reported a fourth-quarter net loss of 43.7 million euros on Feb. 28 as sales slipped to 1.1 billion euros from 1.2 billion euros a year earlier. OTE is scheduled to report its first-quarter results May 8. Telenor reported April 26 first- quarter sales slipped 1.6 percent to 24.7 billion kroner ($4.22 billion), while net income rose to 3.6 billion kroner.

[Bloomberg]

ekathimerini.com , Monday April 29, 2013 (12:34)  
Europe drafts emergency energy plan with eye on Russia gas shut-down
Greek PM vows to bring down unemployment
Greek economy shrinks at slowest pace since late 2008
Prospect of Greek grand prix back on the agenda; huge investment needed
Hardouvelis optimistic ahead of Paris meeting
The Greek government has stepped up its efforts in advancing the structural measures it has committed to, Finance Minister Gikas Hardouvelis said Monday ahead of a two-day meeting with troik...
Erdogan visits Turkish-occupied Cyprus
Recep Tayyip Erdogan was on Monday expected in Turkish-occupied northern Cyprus in his first official visit as new Turkey President. Erdogan, who was sworn in as his country's first popularl...
Inside News
SOCCER
Fulham striker Mitroglou set to re-join Olympiakos
Greek champions Olympiakos Piraeus are set to re-sign Kostas Mitroglou on loan from English second tier club Fulham after the striker arrived in Athens for talks on Sunday. An Olympiakos spo...
SOCCER
Tough draw for Greek sides in Europa League group stage
Following Thursday nightís high, when all three Greek teams competing in the Europa League made it into the group stage of the competition, a harsh reality struck Friday as they found out wh...
Inside Sports
ANALYSIS
EUís three big problems all linked
The outgoing president of the European Council, Herman Van Rompuy, said at the weekend that his successor, Donald Tusk, currently Polandís prime minister, faces three big challenges: the sta...
COMMENTARY
A great president
I fully understand the countryís need for political stability, a necessity which makes the election of a president by the current Parliament absolutely imperative. At the same time, however,...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
†RECENT NEWS
1. Europe drafts emergency energy plan with eye on Russia gas shut-down
2. Greek PM vows to bring down unemployment
3. Hardouvelis optimistic ahead of Paris meeting
4. Erdogan visits Turkish-occupied Cyprus
5. Greek economy shrinks at slowest pace since late 2008
6. Laid-off cleaners to protest outside police headquarters
more news
Today
This Week
1. Excavation work at Amphipolis reveals section of marble mosaic floor
2. A great president
3. Donít feed the zombies
4. Greek officials meet to fine tune strategy for Paris talks with troika
5. Greek economy shrinks at slowest pace since late 2008
6. Protesters interrupt blessing ceremony at University of Athens
Today
This Week
1. Attack on gay couple in Athens leaves one man needing surgery
2. The battle against progress
3. Thessaloniki mayor Boutaris sworn in wearing yellow star amid Golden Dawn protests
4. Strong undersea quake occurs off island of Milos, felt in Athens
5. Greek quest for debt relief faces hurdles in Paris
6. Hardouvelis, ECB executive discuss bank program, stress tests
†††Find us ...
††... on
Twitter
†† ††... on Facebook ††
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.