Strategy on selling government’s Telekom Romania stake delayed further

14 Oct 2015

Romania’s Minister of Information Society Sorin Grindeanu has disclosed that a group of international consultants have not yet delivered a strategy report on selling the government’s minority stake in the country’s incumbent national PSTN operator Telekom Romania Communications (formerly RomTelecom), despite the previous expectation that the report would be finished in late September or early October. The minister was quoted by business daily ZF.ro as confirming that he was yet to receive the report, adding that his ministry has scheduled a ‘videoconference with London on this issue’ this week. The team of consultants chosen in December 2013 consists of: Swiss Capital SA (formerly KBC Securities Romania SSIF SA) – the largest broker on the Romanian stock exchange; Swiss investment bank UBS; Musat & Asociatii – one of the largest Romanian legal firms; and BT Securities SA, which is the brokerage arm of the Banca Transilvania group.

TeleGeography notes that 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).