Vodafone joins Digi in acquiring Greek OTE’s mobile division in Romania

Romanian telecommunications group Digi Communications (BVB: DIGI) announced that following the decision of local businessman Adrian Toms to exit the original deal, it has entered into a memorandum of understanding (MoU) with the Hellenic Telecommunications Organization (OTE) and Vodafone Romania, the subject of discussion is the sale of the local mobile division to OTE Telekom Roman Mobile Communications (TKRM).

This is the third iteration of TKRM’s divestment operation after OTE announced last November that Tomşa would take over the management of its Romanian mobile unit. First, Digi joined Tomsa in a deal in May. Tomsha has now been replaced by Vodafone.

According to the Memorandum of Understanding, the parties intend to “enter into a series of interdependent transactions and transactions whereby Digi Romania will acquire certain assets from TKRM and Vodafone Romania will indirectly acquire shares held by OTE in TKRM.”

Thus, Vodafone Romania will be part of the acquisition of TKRM along with its competitor Digi; The two companies are going to divide between themselves, according to an as yet undisclosed structure, the assets of TCRM: subscribers of individuals and legal entities, clients with prepaid cards, radio frequency licenses, communication infrastructure (towers, antennas), but also the operator’s team of employees.

“With this deal, Vodafone will contribute to creating a stronger telecommunications market in which operators will have the necessary size to innovate and invest significantly in new technologies, positioning Romania as a European leader,” Vodafone Romania said, as quoted by Ziarul. Financier

Completion of the Transaction is subject to a number of conditions, including completion of the due diligence process, receipt of necessary regulatory approvals, and completion and signing of documentation related to the Transaction.

Earlier this year, in May, Digi announced that it had reached an agreement to take an indirect majority stake in Telekom Roman Mobile, the local mobile operator and the latest asset of the Greek OTE group, which acquired the country’s incumbent telecoms group Romtelecom in a process launched in May. 1998.

“From a competition point of view, everything is more complicated because Digi is a big player in the market,” Bogdan Chiritoiu, head of the national competition authority Consiliul Concurentei, commented at the time.

The challenges remain as Vodafone Romania is also a major player in the market.

According to the agreement announced by Digi on May 27, 2024, West Network Invest, an investment company majority owned by Digi Romania (DIGI’s national arm) and a minority stake by the Clever Media group (owned by Tomša), was to take over the management of 99. 99% shares of TCRM.

Under the new Memorandum of Understanding announced on October 31, the Romanian Digi Group will only take over certain assets, while Vodafone Romania will indirectly acquire the shares held by OTE in TKRM.

(Photo: Tobias Archelger/Dreamstime)

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