Turkcell Confirms Interest in Buying Bulgarian Mobile Network
Published on: 21st Nov 2012
Note -- this news article is more than a year old.
By: Ian Mansfield
Turkey based Turkcell has confirmed that it has submitted a non binding indicative offer for a 100% stake in Cosmote Bulgaria Mobile ("Globul") the second largest mobile operator in Bulgaria.
The company added that no decision has been taken by the Board of Directors at this stage.
The Bulgarian subsidiary has been put up for sale by its Greek owners, OTE as the company seeks funds to reduce debts of EUR3.4 billion which are due to mature over the next couple of years.
Globul has been valued at around EUR800 million.
OTE's debt totals EUR4.9bn and existing cash resources invested overseas, some in other government bonds, is EUR707m in short-dated highly rated government securities and EUR849m cash as at Q112.
OTE's debt ratings were downgraded earlier this year over concerns about a possible Euro exit by the Greek government and the likelihood of debt support from 40% shareholder, Deutsche Telekom.