March 21, 2018 / 8:59 AM / a month ago

Deutsche Telekom to buy additional 5 percent stake in Greece's OTE Telecom

ATHENS (Reuters) - Deutsche Telekom (DTEGn.DE) will acquire an additional 5 percent stake in Greece’s biggest telecom operator OTE (OTEr.AT) for 284 million euros ($349 million), after a tender to sell the shares drew no bids.

A Deutsche Telekom logo is seen at the Mobile World Congress in Barcelona, Spain, February 26, 2018. REUTERS/Yves Herman

OTE, the former national monopoly, is 40 percent owned and managed by Deutsche Telekom. Athens invited the German company to exercise its right of first refusal to buy the shares after a tender to sell a 5 percent stake last month as part of Greece’s international bailout attracted no interest.

Shares in OTE were up 2.2 percent on Wednesday, outperforming the Athens bourse general index .ATG, after the Greek privatization agency (HRADF) announced details of Deutsche Telekom's agreed purchase of the stake.

Privatizations have been a key plank of Greece’s international bailouts since 2010 but have reaped about 4.7 billion euros so far versus an original target of 50 billion due to bureaucracy and political opposition.

Athens aims to raise 2 billion euros this year from selling stakes in oil refineries, water and energy utilities. It has earmarked 250 million euros from the stake in OTE in this year’s budget.

($1 = 0.8149 euros)

    Reporting by Angeliki Koutantou, editing by Louise Heavens and Susan Fenton

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