ECONOMY

OTE completes sale of Telekom Romania for 295.6 mln euros

ote-completes-sale-of-telekom-romania-for-295-6-mln-euros

Hellenic Telecommunications Organization SA (OTE) announced on Thursday that the sale of its 54% stake in Telekom Romania Communications SA (TKR) to Orange Romania has been successfully completed. The final equity consideration reached 295.6 million euros.

OTE said it anticipates distributing to shareholders approximately €174 million, in the form of extraordinary dividend and incremental share buybacks. The dividend distribution, subject to appropriate corporate approvals, is expected to take place within 2021. The Athens-listed telecom added it will proceed with a new announcement with the relevant details.

OTE’s Chairman and CEO, Michael Tsamaz, noted: “The sale of Telekom Romania Fixed is a strategic decision enabling OTE’s rapid infrastructure rollout in Greece and enhancing its long term growth outlook and shareholder value. In Romania, it will support the growth of Telekom Romania Fixed and drive market competitiveness benefiting Romanian customers and society.”

He added that “OTE remains in the Romanian market with Telekom Romania Mobile, targeting positive cash flow generation through a revamped market approach. It is therefore a transaction that benefits all parties involved. I would like to thank Telekom Romania’s management and employees for all the company’s accomplishments to date and wish them a prosperous future.”