OTE agrees deal for Globul sale to Telenor
Greek operator OTE has agreed a €717 million deal to sell Bulgarian unit Globul to Telenor in an effort to reduce debt and concentrate on its domestic market.
Continued divestment of assets has helped OTE almost half its debt, which reached €4.3 billion in early 2011.
Michael Tsamaz, OTE chief executive, said the deal “reduces OTE group's debt and ensures long-term sustainability”, also allowing the operator to focus on domestic customers.
“Going forward, we can now focus on fully meeting our customers’ needs by developing next-generation networks, as well as new products and services,” added Tsamaz.
Deutsche Telekom-owned OTE has included Germanos Bulgaria, a telecoms retailer, in the deal.
Telenor, which owns entities in Hungary, Serbia and Montenegro, said it acquired Globul to enhance services in the region.
“Our entrance into the Bulgarian market enhances the potential for cross-border co-operation and increased efficiency,” added Kjell-Morten Johnsen, Telenor's EVP and head of European operations, in a statement.