OTE announces the signing of an agreement to sell its 100% stake in Cosmo Bulgaria Mobile EAD (Globul) and Germanos Telecom Bulgaria (Germanos) to Telenor, the Norwegian telecom operator. The agreement consideration reached €717 million (enterprise value) and will be adjusted according to the company’s net debt and changes in its working capital at the date the transaction is completed. The price reflects a 6x 2013E EBITDA 1 multiple. OTE’s Chairman and CEO, Mr. Michael Tsamaz, noted: "The sale of Globul in Bulgaria marks the completion of a long and targeted effort, which allowed us to achieve the best return via a tender process. The agreed price improves OTE’s value to the benefit of all shareholders in a particularly difficult and turbulent period. It further reduces OTE Group’s debt and ensures long-term sustainability, regardless of the macroeconomic environment. Since early 2011 and following the receipt of the transaction proceeds, we will have more than halved our net debt, reducing it by €2.3 billion”. Mr Tsamaz added: "Going forward, we can now focus on fully meeting our customers’ needs by developing next-generation networks, as well as new products and services across our footprint. I would like to thank Globul’s management and employees for the company’s accomplishments to date as well as for their sound cooperation with the OTE Group. Telenor is a company with great potential and widespread presence in the region and other major markets, ensuring Globul’s future prospects." The transaction is expected to be completed within the next months, after all necessary procedures have been finalized and is subject to approval by the competent authorities. Citigroup acted as OTE’s financial advisor. 1 EBITDA including management fees
__________________________________________
Claudia Nemat's statement: "OTE successfully brought this transaction to a conclusion. Our strategy aims to focus where we can further promote the expansion into the growth areas of mobile data and broadband business in both the private and the business customer segment" explained Claudia Nemat, Board Member for Europe & Technology Deutsche Telekom AG. __________________________________________
NOTE: This announcement is made by The Hellenic Telecommunications Organization SA (OTE SA), as “Regulated information” in accordance with Law 3556/2007, 1/434/03.07.2007 Decision of the Hellenic Capital Market Commission, article 13 of Law 3340/2005 and 3/347/12.07.2005 Decision of the Hellenic Capital Market Commission. About GLOBUL GLOBUL launched commercial operations in Bulgaria, in July 2001. With a 4.5 million customer base at the end of December 2012, GLOBUL holds the 2nd position in the Bulgarian mobile market, a market of 3 players. The company provides mobile, mobile broadband and hybrid fixed telephony services for all market segments. GLOBUL’s mobile network provides almost 100% population coverage, while its 3G network covers over 94% of the country’s population. In 2012, GLOBUL’s revenues reached 377.6 million Euro, while its EBITDA stood at 135.4 million, with the company’s annual EBITDA margin at 35.9%. About Telenor Telenor Group is an international provider of tele, data and media communication services. Telenor Group has mobile operations in 11 markets in the Nordic region, Central and Eastern Europe and in Asia, as well as a voting stake of 42.95 per cent (economic stake 33 per cent) in VimpelCom Ltd., operating in 18 markets. Headquartered in Norway, Telenor Group is one of the world’s major mobile operators with 148 million mobile subscriptions in its consolidated operations per Q1 2013, revenues in 2012 of NOK 102 billion, and a workforce of approximately 30,000. For more information about Telenor Group, please visit www.telenor.com