Orange Romania has announced it completed the acquisition of a majority stake in Telekom Romania Communications (TKR) from Greek telco OTE on 30 September. The closing of the deal, announced in November 2020, will give Orange a 54% controlling stake in the fixed operator, with the remaining 46% retained by the Romanian state. The company obtained approval from the relevant authorities to enable it to complete the transaction for an enterprise value as previously stated of EUR497 million (USD576 million), based on 100% of TKR and its convergent customer base. This corresponds to an equity consideration of EUR296 million (EUR268 million on a debt-free, cash-free basis).
Orange highlighted the transaction will accelerate its strategy to be the preferred convergent services provider in Romania and that it remains committed to pursuing its investments in the country’s telecoms sector. Both companies will continue to operate as two separate legal entities.
TKR is Romania’s second largest player in fixed telecoms with revenues of EUR633 million reported in 2020. Through its own network infrastructure, TKR provides fixed voice, broadband and pay-TV services to around five million customers and its approximately 90,000km fibre network connects almost three million households. The company also provided convergent services to almost 916,000 mobile subscribers as at 30 June 2021 through an MVNO contract with Telekom Romania Mobile Communications (owned by OTE). These customers will be transferred to Orange Romania’s network in due course.
Mari-Noelle Jego-Laveissiere, Deputy CEO of Orange in Europe, commented: ‘Today is a landmark day for Orange as this acquisition will propel Orange Romania forward in its convergence ambitions. Convergence is the key to our growth across Europe, and Romania is a key part of the Group’s European success story.’ Orange Romania CEO Liudmila Climoc added: ‘Together, we will build for our customers a complete offer with extended fixed coverage, mobile services from Orange, including expanding 5G coverage, more varied TV content and ICT solutions that support the digital transformation of businesses and public administrations.’