As expected, Deutsche Telekom has reached a €900 million deal to acquire the remaining 49% of Slovak Telekom it does not already own.
The German incumbent already owns 51% of Slovak Telekom, while the rest is currently owned by the Slovak government, which planned to sell its shares via an initial public offering (IPO) this month.
However, the IPO was cancelled after the National Property Fund of the Slovak Republic (NPF), which holds the government’s stake in Slovak Telekom, received a better offer. While the NPF would not confirm where the offer came from, sources cited by Reuters at the time claimed it was made by Deutsche Telekom.
Slovak Telekom’s IPO price of between €17.70 and €23.60 per share valued the government’s stake at between €750 million and €1 billion, so Deutsche Telekom’s €900 million offer falls towards the top end of that range.
"As the only operator in Slovakia with quad-play capabilities, Slovak Telekom is a highly attractive asset," said Claudia Nemat, board member for Europe and technology at Deutsche Telekom, in a statement. "It is the market leader in fixed-line, fixed broadband and pay TV, as well as the second largest mobile player in Slovakia."
Deutsche Telekom said the transaction is not subject to regulatory approvals and is expected to be closed in the coming weeks.
