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Telekom Romania could sell businesses separately - report

Telekom Romania could sell businesses separately - report Romania

BUCHAREST (Romania), July 2 (SeeNews) - Deutsche Telekom could sell its Romanian subsidiary’s business lines separately to speed up the divestment process, local media reported.

Currently, negotiations are being held with local telecommunications group RCS&RDS to buy Telekom Romania’s cable TV business, with Orange for the mobile telecommunications business, and with a Russian investment fund represented by Bulgarian investor Spas Roussev for the fixed and Internet networks, local news portal reported on Monday.

According to the media report, the negotiations for the sale are in an advanced stage and the company wishes to exit the Romanian market in the following months.

No official comments from Deutsche Telekom or its Romanian subsidiary were immediately available.

Telekom Romania's adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 20.8% year-on-year in the first quarter of 2019 to 26.2 million euro ($29.6 million), its parent company, Greece's OTE, has said.

In January, OTE Group, Deutsche Telekom's subsidiary in Greece, said it has not entered talks for the sale of its shareholding interest in Telekom Romania.

"Regarding your questions on Telekom Romania, OTE Group, as the direct shareholder, has not entered negotiations with a third party," ΟΤΕ Group media relations senior manager Kostas  Kanakaris told SeeNews in an e-mailed statement at the time.

OTE is present in Romania since 2014 through Telekom. 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.  

Telekom Communications Romania is owned by OTE with 54% and by the Romanian communications ministry with 45.99%, while Telekom Mobile Romania is owned by OTE Group member Cosmote Mobile Communications with 69.9%, Telekom Romania Communications with 30% and minority shareholders.

In May, OTE Group completed the sale of its entire stake of 99.757% in Telekom Albania to Bulgaria-registered Albania Telecom Invest company for a total gross equity consideration of 50 million euro ($57.2 million).

Albania Telecom Invest is owned by Bulgarian businessman Spas Roussev and by Albanian-Bulgarian investor Elvin Guri. Roussev is also chairman of the supervisory board of Sofia-based telecommunications group BTC trading as Vivacom.

($ = 0.8833 euro)