Greek-based Hellenic Telecommunications Organisation (OTE) has announced that the transfer of 100% of Bulgarian mobile operator Cosmo Bulgaria Mobile (trading under the GloBul brand) and its integrated retailer Germanos Telecom to Norwegian group Telenor was concluded on 31 July 2013. According to a press release, the sale price amounted to EUR717 million (USD951.8 million), equivalent to six times the company’s projected EBITDA for 2013. As previously reported by TeleGeography’s CommsUpdate, the European Commission (EC), the executive body of the European Union (EU), approved the acquisition of GloBul and Germanos earlier this month, under the EU Merger Regulation procedure; the EC ruled that the proposed transaction would not hinder competition in the wholesale international roaming services market, as the number of the active players will remain unchanged.
OTE Group’s CFO Babis Mazarakis commented: ‘The successful completion of GloBul’s sale at an optimum price is a significant step in pursuing OTE’s refinancing strategy, adding to the Group’s value. At the same time, it ensures the continued positive performance of GloBul in Bulgaria’s telecoms market, as a member of the Telenor Group, a strong and reliable telecommunications provider, to the benefit of customers and employees alike. With the completion of this transaction OTE reduces its net debt to less than EUR2 billion or by more than 50% since the beginning of 2011.’