Hellenic Telecommunications Organization S.A. (“OTE”) announced that the sale of its 54% stake in Telekom Romania Communications S.A. (“TKR”) to Orange Romania has been successfully completed today. The final equity consideration reached €295.6mn.
OTE anticipates distributing to shareholders approximately €174mn, in the form of extraordinary dividend and incremental share buybacks. The dividend distribution, subject to appropriate corporate approvals, is expected to take place within 2021. OTE will proceed with a new announcement with the relevant details.
“The sale of Telekom Romania Communications S.A. is a strategic decision enabling OTE’s rapid infrastructure rollout in Greece and enhancing its long term growth outlook and shareholder value. In Romania, it will support the growth of Telekom Romania Communications and drive market competitiveness benefiting Romanian customers and society.
OTE remains in the Romanian market with Telekom Romania Mobile Communications S.A., targeting positive cash flow generation through a revamped market approach. It is therefore a transaction that benefits all parties involved. I would like to thank Telekom Romania’s management and employees for all the company’s accomplishments to date and wish them a prosperous future,” OTE’s Chairman and CEO, Mr. Michael Tsamaz told a Telekom press release.
The announcement is issued in accordance with Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014.
Both companies will continue to operate as two separate legal entities. Liudmila Climoc will continue her responsibilities as CEO of Orange Romania, while Andrei Popovici has been named today as CEO of TKR, informs an Orange press release.
“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,” stated Mari-Noelle Jego-Laveissiere, Deputy CEO in charge of Orange in Europe.
Liudmila Climoc, CEO, Orange Romania, commented: “We are part of a defining moment, not only for Orange, but for the entire telecoms market in Romania. I am very proud that Orange Romania and TKR teams have reached this point. We now move forward together, as a joint force and with a common goal – to be the first choice for convergent services in Romania. 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 and ICT solutions that support the digital transformation of businesses and public administration”.