Bulgaria's Globul Expected to Fetch Greek OTE EUR 800 M

A file photo, dated September 2008, shows Bulgarian mobile operator Globul marking the seventh anniversary since its launch with a party at a restaurant raised 45 meters above the ground in downtown Sofia. Photo by Sofia Photo Agency

Greek telecoms group OTE will seek to sell its Bulgarian businesses - a mobile phone company and an electronic appliance retail chain – for no less than EUR 800 M, according to reports.

Bulgarian phone services provider Globul and Germanos Telecom Bulgaria are expected to fetch the Greek telecom giant some EUR 800 M, the online edition of Kathimerini reported.

"OTE management has repeatedly said that it will sell one of its units abroad at a satisfactory price," the company said in a short statement, cited by local media.

OTE, the biggest telecoms operator in southeastern Europe, announced last week that it plans to sell its Bulgarian units to help refinance EUR 3.4 B debt maturing in the next two years.

According to unconfirmed reports, OTE has hired the London unit of US Citigroup as a consultant for the sale.

Turkish Turkcell, British Vodafone and Orange, owned by France Telekom, have been listed as potential buyers.

Deutsche Telekom, which controls a 40% stake in OTE, will also have a say in the sale, as will the new Greek government, which still owns the "golden share" in OTE giving it the right to take part in all key decisions.

Globul is the trademark under which Cosmo Bulgaria Mobile EAD offers mobile telecommunications services in Bulgaria.

The company is 100% owned by Cosmote, OTE's mobile phone arm.

As indicated in OTE Group's 2011 financial results, Globul's postpaid customer base increased by 13.3% year-on-year in Q4'2011, reaching 2.6 million, corresponding to over 60% of the total customer base.

Globul total revenues declined by 0.8% in the last quarter of 2011, compared to the same period last year, as the strong performance on handsets sales could not fully compensate for the lower service revenues.

Total revenues for 2011 reached EUR 412.5 M, or 2.6% lower than 2010.

OTE also recently sold its stake in the Serbian phone company.

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