OTE looking to divest Bulgarian operator Globul

Greek incumbent OTE has confirmed it is looking to divest its Bulgarian telecoms unit Globul.

Cash-strapped OTE's high debt position, in addition to the problems it has faced as a result of Greece’s economic crisis are reasons behind the asset sale. Globul is Bulgaria’s second largest mobile operator with a market share of 36% and over 4.3 million customers.

According to an OTE press release, any sale of the operator would help OTE pay off bonds due to mature in the next two years. There are further rumours that London Citigroup has been hired as a consultant for any potential sale, following the emergence of unconfirmed speculation in the Greek press of a sale in early April.

Turkish operator Turkcell has emerged in both the Greek national press and in Bulgaria as an early potential buyer, after its proposed acquisition of Bulgarian operator Vivacom fell through last month. Other rumoured interested parties include Vodafone and France Telecom-Orange.

OTE is 40% owned by Deutsche Telekom.