DT agrees to buy 19.9% of OTE for USD3.9 billion, looks to raise stake further

17 Mar 2008

Greek holding company Marfin Investment Group (MIG) has confirmed that it has agreed to sell its 19.9% stake in Greek incumbent telco Hellenic Telecommunications. Organisation (OTE) to German heavyweight Deutsche Telekom (DT). The two companies have agreed on a price of EUR26 for each of MIG’s 98.03 million shares in OTE, or a total of EUR2.549 billion (USD3.928 billion), and the transaction is expected to be completed by 7 May 2008 at the latest, subject to the approval of Greece’s Inter-Ministerial Committee for Privatisations. The deal has been approved by each company’s board of directors, although remains subject to final clearance from DT’s Supervisory Board. DT says it intends to enter talks with the Greek government to raise its stake further in the former monopoly fixed line operator and its wholly owned mobile subsidiary Cosmote. A statement from DT read: ‘The execution of this agreement is conditional upon Supervisory Board approval as well as DT entering into a shareholder agreement with the Greek government,’ adding that it will also seek ‘approval from the Inter-Ministerial Committee for DT to increase its stake in implementation of its strategic objectives…DT expects to initiate discussions with the Greek government with the aim to reach agreement in the very near future.’

Greece, Cosmote, Cosmote (old), Deutsche Telekom (DT)