Deutsche Telekom (DT) is thought to have offered around EUR900 million (USD1 billion) to acquire the 49% of Slovak Telekom (ST) that it does not already own, Bloomberg writes, citing ‘three people familiar with the matter’. The Slovak government had planned to offload the stake via an initial public offering (IPO), but the sale was cancelled last week when DT came forward with a bid which beat the IPO valuation. The buyout accord would include locking EUR100 million in an escrow account until pending legal disputes are settled, the sources claim. Finance Minister Peter Kazimir has said that the government will make a decision on the offer ‘within a week’. The government wants to use the proceeds to reduce state debt, while DT is seeking to jumpstart growth in Europe. The German group has been a shareholder in ST since 2000 when it paid USD1 billion for its 51% interest.
Separately, ST has reported revenues of EUR187 million for the first quarter to 31 March 2015, down 1.7% year-on-year. Adjusted EBITDA fell 5.4%, meanwhile, to EUR73 million, with the firm claiming fixed broadband and pay-TV services performed particularly well to help offset customer losses at the mobile unit. ST had 2.20 million mobile customers at the end of March, down from 2.26 million twelve months before, while fixed broadband subscribers climbed 7.1% to 570,000 over the same period and pay-TV users rose from 444,000 to 474,000.