December 4 (SeeNews) - The Telekom Romania group said on Monday that all its mobile entities will merge under Telekom Romania Mobile Communications SA, as absorbing company.
The merger will concentrate the entire mobile telephony operations of Germanos Telecom Romania SA, Sunlight Romania Filiala Bucuresti SRL and Telemobil SA, as absorbed companies, Telekom Romania said in a press release.
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"The merger of our mobile operations is an important step in the transformation program initiated this year, in line with our strategy to consolidate our position on the local telecom market. The merger will lead to a leaner and more efficient structure, and also to a more efficient use of resources, contributing to support the execution of our new commercial strategy, as well as to the consolidation of Telekom brand on the market," Telekom Romania CEO Miroslav Majoros said.
The merger of the mobile operations of Telekom Romania group is effective starting December 1, 2017. Telekom Romania Mobile Communications will maintain its main field of activity.
The merger does not involve any discontinuation or significant changes of the services for the customers, the company said.
As an effect of the merger the employees of the absorbed companies have been transferred to the absorbing company as of December 1, Telekom Romania Mobile Communications, while preserving the same labor contract provisions and the same rights and benefits.
The pro forma earnings before interest, taxes, depreciation and amortisation (EBITDA) of Telekom Romania Mobile fell by an annual 32% to 43.5 million euro ($50.4 million) in the first nine months of 2017, its parent company, Greece's OTE, said in November.
Its sister company, fixed-line operator Telekom Romania Communications, posted negative earnings before interest and taxes (EBIT) of 22.4 million euro in the first nine months of 2017.
Deutsche Telekom is present in Romania through its 40% shareholding interest in OTE. OTE's units in Romania - fixed-line operator RomTelecom and mobile operator Cosmote - were rebranded as Telekom Communications Romania and Telekom Mobile Romania, respectively, in September 2014.
In October, Telekom Romania partnered with Poland's Alior Bank in the launch of Telekom Banking - a package offering digital financial services to customers. The package of services will be introduced in phases, with daily banking services already launched and an online exchange platform to follow.
($ = 0.8441 euro)