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No intention to buy out more minority shareholders, DT says

11 Feb 2014

Following the acquisition of the remaining shares of its Czech unit yesterday, German telecoms group Deutsche Telekom (DT) says it does not currently have any plans to buy out minority shareholders in other markets, the Wall Street Journal reports. The Bonn-based telco announced that it had acquired the outstanding 39.23% stake in T-Mobile Czech Republic for around EUR800 million (USD1.09 billion) from a private equity consortium led by Mid Europa Partners, but DT has quelled market expectations of a possible purchase of the remaining 40.79% stake in its Hungarian subsidiary Magyar Telekom.

TeleGeography’s GlobalComms Database notes that DT has recently turned its attention to eastern Europe; in November 2013 it signed a deal to purchase Warsaw-based altnet GTS Central Europe in a move that will enable it to add fixed line networks in several countries where its operations are primarily based on wireless services. DT agreed to acquire GTS CE for EUR546 million from a number of private equity groups including Columbia Capital, HarbourVest Partners, Innova Capital and M/C Partners. If approved – the deal is subject to regulatory consent in each target country – DT will bolster its assets with the addition of PSTN infrastructure in Poland, the Czech Republic, Hungary and Romania, giving it the opportunity to revive its businesses in the region.

Germany, Deutsche Telekom (DT), Magyar Telekom, T-Mobile Czech Republic

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