Telenor Buys Bulgarian Mobile Network, Globul
Norways's Telenor has announced that it has bought the second-largest mobile network in Bulgaria, Globul. Globul was put up for sale by its parent company, Greece's OTE, which has been seeking to pay down its debt.
Telenor did not disclose the amount paid, but OTE was known to be seeking bids in the region of EUR700 million for the Bulgarian subsidiary.
ญญUpdate: The purchase price was later revealed to be EUR 717 million.
The transaction also includes Germanos Bulgaria, a
mobile phone retailer that is integrated with Globul.
"Based on our experience in Telenor's well-performing operations in the region, we strongly believe that we will be able to create value in the Bulgarian market. By contributing with our scale and experience to Globul's competence and market knowledge, we can offer even better quality and more advanced services to Bulgarian customers," says Jon Fredrik Baksaas, President and CEO of the Telenor Group.
In Central and Eastern Europe, Telenor Group is currently present in Hungary, Serbia and Montenegro.
"Our entrance into the Bulgarian market enhances the potential for cross-border co-operation and increased efficiency that our customers, businesses and the Telenor Group as a whole will benefit from. We also see a potential in expansion of mobile data and internet-based services in the market," said Kjell-Morten Johnsen, Executive Vice-President and Head of region Europe.
Globul has been present in Bulgaria since 2001. At the end of 2012, the company reported 4.5 million subscribers and a 36 percent subscriber market share. In 2012, Globul and Germanos Bulgaria generated revenues of EUR 378 million and EBITDA of EUR 135 million.