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Monday, May 30, 2005

Cosmote to buy 70 percent of Cosmorom

Greece's largest wireless operator, Cosmote Mobile Telecommunications SA, said Friday said it has agreed to buy a 70 percent stake in Romanian mobile operator CosmoRom for euro120 million (US$150 million).

Cosmorom is the mobile arm of RomTelecom, Romania's dominant fixed-line telecom operator, which is 54-percent owned by Greece's Hellenic Telecommunications Organization, or OTE, the parent of Cosmote.

Cosmorom will undergo a share capital increase after which Cosmote will buy the 70 percent stake. CosmoRom will keep the remaining 30 percent stake.

Cosmote said that on completion of the purchase, CosmoRom's debt will either be capitalized or written off, except for the euro16 million (US$20 million) that CosmoRom owes to OTE's unit OTE International.

Third-party liabilities up to euro2 million (US$2.5 million) will not be written off, Cosmote said.
Cosmote said that the purchase agreement also includes some minority rights in CosmoRom for RomTelecom.

Posted by Iulia Rasoiu : 5/30/2005 09:51:00 am