PARIS (Reuters) – Orange from France ORAN.PA agreed to buy a 54% stake in Telekom Romania Communications from Deutsche Telekom’s OTE DTEGn.DE, in a deal giving the Romanian unit an enterprise value of 497 million euros ($ 591.1 million), the companies said.
Orange, France’s largest telecom group, said it would pay OTE OTEr.AT € 268 million for the controlling stake in Romania’s second-largest fixed-line telecom player on a debt and cashless basis subject to customary closing adjustments.
OTE, the Greek operator which is 46% owned and managed by Deutsche Telekom, said the transaction is expected to close in the second half of 2021. OTE would retain its stake in Telekom Romania’s mobile business, he added. .
Telekom Romania Communications achieved 2019 revenues of 622 million euros. It provides fixed telephony, broadband and pay television services to 5 million customers.
“This acquisition is an important step in accelerating our convergence strategy in Europe. Romania is a key market for Orange and a great success ”, declared Mari-Noëlle Jégo-Laveissière, Deputy CEO of Orange.
OTE has sought to sell its stake in Telekom Romania to focus its investments on next-generation 5G networks in Greece.
“The sale of Telekom Romania is a strategic decision in the context of redefining the priorities and growth plans of the OTE group,” Michael Tsamaz, CEO of OTE, said in a statement.