- Deutsche Telekom buys additional shares of OTE from the Hellenic Republic Asset Development Fund (HRADF) increasing its total shareholding to 45 percent
- Purchase price of 284 million euros
- The transaction is in line with Deutsche Telekom Group strategy to become leading European telco
Deutsche Telekom today announced that it has completed the purchase of another 5 percent of Hellenic Telecom’s (OTE) shares. Deutsche Telekom on March 16, 2018 made use of its “Right of First Refusal” (RoFR) towards the Hellenic Republic Asset Development Fund (HRADF), which is part of the Shareholders’ Agreement between the Hellenic Republic and Deutsche Telekom AG, to which HRADF has acceded.
By exercising this contractual right, Deutsche Telekom acquires additional 24.5 million common registered shares of OTE, corresponding to 5 percent of OTE’s share capital, hence raising its total stake to 45 percent. The transaction is based on a volume weighted average price of the OTE share over a period of 20 days until March 15, 2018. The purchase price for the above mentioned OTE shares totals approx. 284 million euros.
OTE contributes significantly to Deutsche Telekom’s Europe segment, as it further drives customer growth in broadband, mobile communications and TV. At the end of 2017, the company served 1.8 million broadband customers, almost 8 million mobile customers and 525,000 TV customers in Greece.
“This move underscores our long-term commitment to Greece. OTE is a strong cornerstone of our strategic ambition to become the leading European telco,” says Srini Gopalan, Deutsche Telekom Board Member for Europe, adding: “Growth can be achieved primarily through convergence and digitization and OTE is an essential part of our coordinated strategic efforts to make this happen.”
The transfer of the 5 percent of OTE shares is not subject to any regulatory approvals. Deutsche Telekom and the Hellenic Republic have been parties to a Shareholder Agreement since May 2008.
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