Cosmote completes Zapp acquisition

3 Nov 2009

Balkans mobile group Cosmote has announced that it has completed the acquisition of Romanian cellco Zapp following approval by the relevant authorities. As reported by CommsUpdate on 1 July 2009, OTE-owned Cosmote agreed a deal with Saudi Oger to buy Telemobil, which trades under the name Zapp, for a cash consideration of EUR61 million (USD85.7 million) plus debts and other liabilities estimated at EUR146 million. The acquisition of Zapp is an important investment for Cosmote Group and is expected to enhance its Romanian arm’s growth prospects, enabling the company to offer new mobile broadband services through the 3G license it acquires with Zapp, expand its customer base and make further inroads in the particularly promising corporate market segment. Cosmote CEO, Michael Tsamaz, stated: ‘The completion of the deal for the acquisition of Zapp marks a very important milestone for Cosmote Group and its subsidiary in Romania, further enhancing its market dynamics. There is a lot of work to be done in order to ensure that the integration process that follows will lead to an even stronger operator to the benefit of consumers and the country’s economy, enhancing real competition in the market.’