OTE completes sale of Globul to Telenor

Greek operator OTE yesterday confirmed that it has completed the sale of its Bulgarian operations, Globul, to Norway’s Telenor.

A deal was agreed in April this year, and the final sale price came to €717 million, Globul’s reported enterprise value.

“The successful completion of Globul’s sale at an optimum price is a significant step in pursuing OTE’s refinancing strategy, adding to the company’s value,” said Babis Mazarakis, CFO at OTE Group.

“It also ensures the continued positive performance of Globul in Bulgaria’s telecommunications market, as a member of the Telenor group, a strong and reliable telecommunications provider, to the benefit of customers and employees alike.”

Mazarakis expects the sale to reduce the company’s net debt by 50% in comparison to the beginning of 2011.

“We remain focussed on generating strong cash flows to secure the achievement of the Group’s business goals,” he added.

This focus is apparent in the company’s recent sale of its majority stake in Hellas Sat to Saudi’s Arabsat.