French telecom major Orange will acquire a 54 percent stake in Romania’s leading fixed telecom operator Telekom Romania from OTE, a Greece -based telecommunications company. It is reported that the enterprise value of Telekom Romania is worth 497 million euros.
Orange will pay 268 million euros to OTE for the controlling stake in the Romanian company on a cash-free basis. Deutsche Telekom owns and manages 46 percent of OTE. The transaction of the acquisition will be completed in the second half of next year.
The Greek company will retain its ownership in the Romanian company’s mobile business. It is reported that Telekom Romania recorded a revenue worth 622 million euros last year. The company serves 5 million customers and specialises in pay-tv, broadband and pay-tv services.
Orange Deputy Chief Executive Mari-Noelle Jego-Laveissiere, told the media, “This acquisition is an important step to accelerate our convergence strategy in Europe. Romania is a key market for Orange and a great success story. OTE has been looking to divest its stake in Telekom Romania to focus investment on next-generation 5G networks in Greece.”
OTE’s Chief Executive Michael Tsamaz said that the acquisition of Telekom Romania is an important decision in the context of OTE’s growth and redefined plans. Amazon Prime Video has signed a distribution deal with Orange last week. The deal allows the listing of Prime Video on the main menu of Orange TV with other channels. Many global telecom companies have been disrupted by the pandemic in the last few months.