Deutsche Telekom will acquire a 5% stake in OTE, Greece’s biggest telecommunications operator, the Greek privatization fund said on Wednesday.
The German telecommunications company already owns a 40% stake in OTE, Greece’s former national monopoly.
Last month Greece launched a tender to sell a 5% stake in OTE as part of its third bailout program.
The state fund did not receive any bids and has invited Deutsche Telekom, which also manages OTE, to exercise its right of first refusal to buy the shares.
HRADF announces that, following the notice sent on 03/16/2018, Deutsche Telekom AG exercised its right of first refusal for the acquisition of 24,507,520 common registered shares of OTE, pursuant to the terms 8.4 and 8.6 of the shareholders’ agreement between the Hellenic Republic and Deutsche Telekom AG to which HRADF has acceded. Deutsche Telekom served a relevant confirmation to HRADF on 03/20/2018.
Deutsche Telekom will pay 284.05 million euros ($349.31 million) for the 5% stake.
Shares in OTE were up 2.2 percent on Wednesday, outperforming the Athens bourse general index .ATG, after the Greek privatization agency (HRADF) announced details of Deutsche Telekom’s agreed purchase of the stake. [marketwatch, reuters, hradf]
