Deutsche Telekom has continued its expansion strategy across Eastern Europe after striking a deal to acquire the 49 per cent stake in Slovak Telekom that it does not already own.
The agreement, worth approximately €900 million, had been touted earlier this month after the Slovakian government ditched the company’s pending IPO, due to a late bid from an unnamed strategic partner.
Although the country’s finance minister refused to identify the company in question at the time, Reuters speculated that it could be Deutsche Telekom, given it already held a 51 per cent stake in the Slovakian player.
In a statement today, Deutsche Telekom said the acquisition will have no impact on group revenue and EBITDA, given that the operator is already a fully consolidated subsidiary.
The move is in line with Deutsche Telekom’s strategy to establish itself as a leading integrated pan-European telco, and further complements its Eastern European businesses in Hungary, Poland and Czech Republic.
Claudia Nemat, Deutsche Telekom’s board member for Europe and Technology, said Slovak Telekom was a highly attractive asset as it is the only operator in the country with quadplay capabilities.
“It is the leader in fixed-line, fixed broadband and pay-TV, as well as the second largest mobile player in Slovakia,” she said. “This is also the second of our subsidiaries to offer an all IP network [following Makedonski Telekom] and with the recent introduction of its Megenta One converged fixed mobile services, it continues to be at the forefront of innovation within our group.”
The deal is still subject to regulatory approval, and is expected to complete fully “in the coming weeks.”
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