Orange Romania has closed its acquisition of a majority holding in Telekom Romania Communications (TKR) from Greece’s OTE.
The proposed purchase was announced in November 2020, and closed yesterday (30th September 2021). After receiving the green light from the relevant authorities, Orange now holds a 54% controlling stake in the fixed-line provider, with Romania’s government holding the remainder. The deal had an enterprise value of EUR497 million (US$576 million).
CommsUpdate reports that TKR is Romania’s second largest fixed operator, bringing in revenue of EUR633 million during 2020 with around 5 million customers. It delivers its voice, broadband and pay-TV services via its own infrastructure, including a 90,000km fibre network, and also provides convergent services to around 916,000 mobile customers via an MVNO arrangement with fellow OTE unit Telekom Romania Mobile Communications.
Orange Romania plans to transfer these customers over to its network, although it noted that the companies will continue to exist as legally distinct entities. The acquisition is more aimed at boosting Orange’s convergence strategy in the Romanian market, to which end it will continue to invest in the country.
Orange’s Deputy CEO for Europe Mari-Noelle Jego-Laveissiere said: “This acquisition will propel Orange Romania forward in its convergence ambitions. Convergence is the key to our growth across Europe, and Romania is a key part of the Group’s European success story.”
Orange Romania CEO Liudmila Climoc added: “Together, we will build for our customers a complete offer with extended fixed coverage, mobile services from Orange, including expanding 5G coverage, more varied TV content and ICT solutions that support the digital transformation of businesses and public administrations.”