Deutsche Telekom has confirmed that it will acquire the 39.23% stake that it doesn’t yet own in T-Mobile Czech Republic for €800 million.
The deal is a strategic step towards providing pan-European “integrated” fixed and mobile services. In addition, it provides a strong inroad into Central & Eastern Europe.
In November, Deutsche Telekom spent €546 million on acquiring GTS Central Europe, which operates a fibre optic network across five CEE countries: Czech Republic, Hungary, Poland, Romania and Slovakia.
Claudia Nemat, a Deutsche Telekom board member, said: “The acquisition of the remaining shares is a natural step towards optimising our portfolio and supports our transformation into the leading integrated Pan-European operator.”
“The Czech Republic is an important market for Deutsche Telekom due to its size and structure”, she added. “With the on-going integration of T-Systems Czech Republic and the planned combination with the Czech operations of GTS Group, T-Mobile Czech Republic is on a clear strategic path to enhance its fixed-line capabilities and foster its market position in B2B.”
The shares are currently controlled by private equity firm Mid Europa Partners. T-Mobile Czech Republic is already consolidated by Deutsche Telekom so the deal does not require regulatory approval.