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Deutsche Telekom buys control of Greece's OTE
Deutsche Telekom (DT) has bought a 3% stake in Greece's main telco, OTE, from the Greek government, bringing its holding to 23%. DT is further raising its ownership by buying an additional 2% stake on the market. The new shareholder structure will see DT and the Greek government share control of OTE, both owning 25%, and have five board members each, says Economy Minister George Alogoskoufis.
Deal Details
- Status completed
- Amount US$685m
- Buyer Deutsche Telekom
- Seller OTE (Hellenic Telecommunications Organisation)
The German firm has paid the government EUR442.3m (USD685m) - or EUR29.75 a share - for the 3% stake. This represents a 45% premium over OTE's current stock price. The deal awaits approval from the Greek parliament.
The deal marks DT's expansion into south-eastern Europe, thanks to OTE's subsidiaries in Albania, Macedonia, Romania and Bulgaria. OTE also controls a 20% stake in Serbia's largest telco, Telekom Serbia.
In Mar, DT bought 20% of OTE for EUR2.6bn (USD4bn) from Marfin Investment Group.
