Government plan for divesting Telekom Romania stake due early October

17 Sep 2015

Romanian government-appointed advisors will present a final strategy for divesting the state’s remaining minority stake in national fixed network operator Telekom Romania Communications (formerly RomTelecom) by the end of this month or 3-4 October at the latest, according to Minister for Information Society Sorin Grindeanu, quoted on Tuesday by TeleGeography’s GlobalComms Database says that in December 2013 a consortium – led by brokerage SSIF Swiss Capital and including fellow brokerage BT Securities, investment bank UBS and law firm Musat si Asociatii – was chosen as the consultant for the planned sale. Telekom Romania Communications is 54.01%-owned by Greek telco OTE (itself 40%-owned and joint-managed by Germany’s Deutsche Telekom), with the 45.99% remainder held by the Romanian government via the Ministry for Information Society. Telekom Romania Communications owns 30.0% of cellular network operator Telekom Romania Mobile Communications (formerly Cosmote Romania), with OTE owning 70.0% of the cellco, and together the Romanian sister companies offer an integrated quadruple-play portfolio (under the common ‘Telekom’ [‘T’] branding of the Deutsche Telekom group since September 2014). GlobalComms adds that advisors were also appointed in 2013 for preparation of an eventual planned legal merger of the Romanian fixed and mobile units, although further steps down this path are yet to be taken.