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Greece's OTE Looking to Sell Minority Stake in Serbian Telco
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Greek telco, OTE is looking to sell its 20% stake in the Serbian telco, Telekom Srbija back to the country's government in an effort to reduce its own debt as the local economy contracts.
OTE has debt maturities of EUR756 million of debt due in 2012, and EUR2.1 billion in 2013.
"OTE ... is in talks with Telekom Srbija with the aim of disposing its 20 percent stake in the company," OTE said in a filing to the Athens bourse that was seen by the Reuters news agency.
"As negotiations are ongoing, OTE can't comment either on their outcome, or on the timetable," it added.
OTE originally bought the 20% stake in 1997, but has been unable to increase the holding to management control, or push through necessary economies at the subsidiary.
The Serbian government had offered to sell the remainder of the company in 2010, but OTE lacked the financial muscle to approve the purchase. The Serbian government is still looking to sell the company, but would find it easier to sell if it owned the whole company.
The sale by OTE could be structured either as a sale to the Serbian government, or as an agreed sale to a potential buyer of the remaining 80% of the company.
Deutsche Telekom owns 40% of OTE.
On the web: Reuters
Tags: [ote] [telekom srbija] [Serbia] [Greece]
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