Two rivals said to be in talks to absorb On Telecoms

The smallest of Greece’s alternative telecommunications suppliers, On Telecoms, is reportedly in the acquisition sights of at least two telecom firms.

As the industry continues with efforts to overcome serious problems caused by its high level of borrowing and move ahead to the sector’s concentration, On Telecoms, which has a client base of 60,000 for its double-play service (fixed telephony and Internet), is the easiest of targets for the companies that intend to absorb more clients. The firm’s base is worth an estimated 20-25 million euros.

Talks of a merger have again come up against the companies’ high borrowing, as was the case in past failed talks between Forthnet and Wind and also with Hellas Online. On Telecoms has loans of 50 million euros and obligations of 95 million. The company also has a negative net position, which renders its acquisition by or merger with a rival even more difficult.

According to 2011 financial results, On Telecoms showed a 10 percent decline in revenues, to 43.5 million euros. Losses grew to 22.9 million, accumulated losses added up to 123.4 million and its negative net position amounted to 23.4 million euros. The company has been loss-making since its establishment.

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