Deutsche Telekom has purchased an additional 5 per cent stake in Greek telco, Hellenic Telecom (OTE).
Deutsche will spend €284 million on the stake, which will bring its total holding in the company to 45 per cent.
“This move underscores our long-term commitment to Greece. OTE is a strong cornerstone of our strategic ambition to become the leading European telco,” says Srini Gopalan, Deutsche Telekom Board Member for Europe.
“Growth can be achieved primarily through convergence and digitization and OTE is an essential part of our coordinated strategic efforts to make this happen,” he added.
This new deal will see DT acquire 24.5 million common registered shares in OTE.
OTE serves 1.8 million fixed line broadband customers, 8 million mobile customers and 525,000 tv customers in Greece.
The Greek market was worth €2.85 billion to Deutsche Telekom, contributing 3.8 per cent to its total €74.9 billion revenues. Greece is a key demographic for Deutsche Telekom as it looks to expand its European reach in the face of renewed competition from Vodafone.
The purchase of the shares can be made immediately and is not subject to any regulatory approval, as DT and the Greek government have been party to a Shareholder Agreement since May 2008. – Total Telecom