Telekom Austria has completed the takeover of Bulgarian wireless market leader MobilTel. Telekom acquired 100% of MobilTel for EUR1.6 billion following the signing of a share purchase agreement on 1 June 2005 for a majority stake previously held by an Austrian-led investment consortium. The cellco was consolidated into the Telekom Austria Group on 12 July.
In November 2004 Telekom agreed exclusive rights to acquire 100% of MobilTel in the second half of 2005, following lengthy on/off talks between the two. It carried out due diligence in March in relation to its purchase and subsequently paid a call option fee of EUR80,000 after MobilTel met set financial performance criteria for fiscal 2004. The cellco’s net debt – EUR450 million at end-June 2004 – will be assumed by its new owner. MobilTel had 3.14 million subscribers by the end of March 2005 and an estimated 3.21 million at the end of June, representing around 64% of the market.