Hellenic Telecommunications Organization (OTE, controlled by Deutsche Telekom) has announced the successful completion of the sale of its 54% stake in Telekom Romania Communications (TKR), the incumbent fixed-line operator formerly known as Romtelecom), to Orange Romania. The final equity consideration reached €296mn, OTE said.

The deal was possible after TKR divested its 30% stake in Telekom Romania Mobile Communications (formerly known as Cosmote), a stake that TKR sold to OTE for €58.9mn.

TKR will continue to provide both support and converged fixed-mobile voice, broadband internet, and television services to its approximately 5mn customers. It will also manage the network infrastructure, which covers up to 90,000 km of fibre optics, and connects around 3mn households. Approximately 916,000 customers with mobile services associated with converged contracts will have access, in the coming months, to mobile connectivity in the Orange network.

Mobile services for these customers are provided today by Telekom Romania Mobile through an MVNO contract with TKR.

Subsequent to the contract with Orange, OTE anticipates distributing to shareholders approximately €174mn, in the form of extraordinary dividend and incremental share buybacks.

The dividend distribution, subject to appropriate corporate approvals, is expected to take place within 2021.

OTE’s chairman and CEO, Michael Tsamaz, said that “the sale of TKR is a strategic decision enabling OTE’s rapid infrastructure rollout in Greece and enhancing its long term growth outlook and shareholder value. In Romania, it will support the growth of TKR and drive market competitiveness benefiting Romanian customers and society.”

OTE remains in the Romanian market with Telekom Romania Mobile Communications.