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ATHENS (Dow Jones)--Greece's dominant phone company, Hellenic Telecommunications Organization SA (OTE), said Monday that it has sold its mobile and retail operations in Macedonia to Telekom Slovenije DD (TLSG.LJ) for EUR190 million.
The unit, Cosmofon, is one of the largest mobile providers in Macedonia, with a 30% market share. The sale also includes the disposal of approximately 60 Germanos retail outlets in the country.
Last year, Deutsche Telekom AG (DT) - which operates its own mobile network in Macedonia - acquired a 25% stake in OTE. Combined, the two companies controlled more than 90% of the mobile market so as a result of that tie-up, Macedonian anti-trust authorities have forced OTE to sell its Cosmofon unit.
The sale price was above the unit's net book value of EUR140.1 million and close to analysts' expectations.
"The completion and size of asset disposal has been largely expected, yet it remains a positive step that facilitates employee redundancies (and thus reduces medium-term expenses) in more vital units like domestic fixed line," analysts at National P&K Securities said in a note.
"The implied valuation of the two companies values Cosmofon at circa 10 times 2008 earnings before interest, taxes, depreciation and amortization (Ebitda), a rather stretched valuation when considering typical levels of six to seven times Ebitda for listed mobile assets in Europe," it added. "Yet the above consideration includes the Germanos retail network of about 60 outlets in the country."
In acquiring the unit, Telekom Slovenije said the purchase would further widen its footprint in Southeast Europe, where it already has operations in Kosovo, Bosnia-Herzegovina and Albania, among other places.
Other bidders for Cosmofon included Turkey's largest mobile phone operator, Turkcell (TKC), and Turkish fixed-line telephone company Turk Telekom (TTKOM.IS).
At 1010 GMT, OTE shares were down 2.2% at EUR10.95, in line with the broader Athens stock market.
The unit, Cosmofon, is one of the largest mobile providers in Macedonia, with a 30% market share. The sale also includes the disposal of approximately 60 Germanos retail outlets in the country.
Last year, Deutsche Telekom AG (DT) - which operates its own mobile network in Macedonia - acquired a 25% stake in OTE. Combined, the two companies controlled more than 90% of the mobile market so as a result of that tie-up, Macedonian anti-trust authorities have forced OTE to sell its Cosmofon unit.
The sale price was above the unit's net book value of EUR140.1 million and close to analysts' expectations.
"The completion and size of asset disposal has been largely expected, yet it remains a positive step that facilitates employee redundancies (and thus reduces medium-term expenses) in more vital units like domestic fixed line," analysts at National P&K Securities said in a note.
"The implied valuation of the two companies values Cosmofon at circa 10 times 2008 earnings before interest, taxes, depreciation and amortization (Ebitda), a rather stretched valuation when considering typical levels of six to seven times Ebitda for listed mobile assets in Europe," it added. "Yet the above consideration includes the Germanos retail network of about 60 outlets in the country."
In acquiring the unit, Telekom Slovenije said the purchase would further widen its footprint in Southeast Europe, where it already has operations in Kosovo, Bosnia-Herzegovina and Albania, among other places.
Other bidders for Cosmofon included Turkey's largest mobile phone operator, Turkcell (TKC), and Turkish fixed-line telephone company Turk Telekom (TTKOM.IS).
At 1010 GMT, OTE shares were down 2.2% at EUR10.95, in line with the broader Athens stock market.
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