June 14 (SeeNews) - Croatia's biggest telecommunications operator, Hrvatski Telekom [ZSE:HT-R-A], said on Wednesday it has been granted permission by the country's anti-trust regulator, AZTN, to prolong temporary management rights over its peer Optima Telekom [ZSE:OPTE-R-A] by three years, until July 10, 2021.
In March 2014, AZTN approved the concentration of HT and Optima Telekom for a limited four-year period until 9 July, 2018, Hrvatski Telekom (HT) said in a Zagreb bourse filing.
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HT added that the regulator has also granted a conditional approval for the absorption of H1 Telekom by Optima.
On July 29 last year, Optima submitted to AZTN a request for approval of the concentration between itself and peer H1 Telekom. Earlier this year, the regulator said it has decided to extend the deadline for a decision in the merger assessment proceedings.
HT explained that it had decided to prolong the temporary management of Optima until 2021, following the change in circumstances resulting from the absorption of H1 Telekom.
The the prolonged management of Optima by HT, will allow the merger of H1 into Optima to achieve its full potential through the effect of intercompany synergies.
"This will enable significant improvement of business efficiency and cost reduction in relation to the standalone business activities of H1 and Optima", HT added.
Optima Telekom was awarded a 30-year concession to provide fixed-line services in 2004.
Optima's largest shareholder is Croatia's biggest lender, Zagrebacka banka, with a stake of 40.32%. Hrvatski Telekom owns a 19.02% stake.