Orange seeks part-refund of price paid for Telekom Romania

14 Mar 2022

Orange Group has asked OTE for a retrospective adjustment to the EUR296 million (USD323 million) price it agreed to pay last year for a 54.01% stake in Telekom Romania Communications (TKR), reports Ziarul Financiar, citing a brief declaration within OTE’s 2021 financial results. Having analysed the Romanian fixed services operator’s accounts in details following completion of the acquisition in late September 2021, Orange reportedly submitted a request to OTE on 24 December 2021 for a EUR24 million reduction to the agreed price, in line with the terms of the sale/purchase contract. OTE has yet to respond to the claim.

In order to accelerate its ambition to become a major convergent operator in the market, Orange Romania agreed a deal in November 2020 to acquire OTE’s 54.01% stake in TKR for EUR296 million, corresponding to an enterprise value of EUR497 million based on 100% of the telco and its fixed-mobile convergent subscriptions. The deal was completed on 30 September 2021 after receiving conditional approval from the EC in late July, subject to TKR divesting its 30% minority stake in mobile operator Telekom Romania Mobile Communications, which was subsequently acquired by OTE on 9 September 2021.