Deutsche Telekom to buy out its Czech unit
10 February 2014 | Sophie Donoghue
Deutsche Telekom is to acquire gain full ownership of its T-Mobile Czech Republic unit in a $1.1 billion deal.
The carrier is purchasing the remaining 39.2 % stake from private equity group Mid Europa Partners as part of its strategy to broaden its reach in Eastern Europe.
“The purchase of the remaining shares is a logical step to optimise our portfolio and helps our development into the leading pan-European telecommunications provider,” said Claudia Nemat, head of European operations at Deutsche Telekom.
Deutsche purchased GTS Central Europe for $729 million in November last year, giving access to a fibre-optic fixed-line and infrastructure business in Eastern Europe.
“With the ongoing integration of T-Systems Czech Republic and the planned combination with the Czech operations of GTS Group, T-Mobile Czech Republic is on a clear strategic path to enhance its fixed-line capabilities and foster its market position in B2B,” Nemat added.
The news follows the announcement that Deutsche Telekom plans to inject €1.2 billion into its Greek subsidiary OTE over the next four years, in a bid to put it at the centre of Deutsche’s expanding European operations.