(Updates with OTE statement in third, chief executive’s comment in fourth paragraph.)
Dec. 30 (Bloomberg) -- Telekom Srbija and Hellenic Telecommunications Organization SA, or OTE, signed an agreement today in Athens for the Greek company to sell a 20 percent stake in the Serb national fixed-line and mobile-service provider back to Telekom Srbija.
The value of the transaction is 380 million euros ($491.8 million), Telekom Srbija said in an e-mailed statement. The transaction will be completed by the end of the first quarter in 2012 and result in the Serbian company being completely state- owned again.
Hellenic Telecom will receive a minimum dividend of 17 million euros for 2011 from the deal, the Athens-based company said in a separate e-mailed statement today.
The deal “will have a positive impact on our cash flow and is part of our strategy to reduce OTE’s net debt,” Hellenic Telecom’s Chief Executive Officer Michael Tsamaz said in the statement.
--With assistance from Tom Stoukas in Athens. Editor: Douglas Lytle
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