OREANDA-NEWS. 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 EBITDA1 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