Bloomberg News

Telekom Srbija Signs Accord to Buy 20% Stake Held by OTE

December 30, 2011

(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

To contact the reporter on this story: Misha Savic in Belgrade at msavic2@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net


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