Deutsche Telekom Acquires Additional Five Percent Stake in Greek OTE

The German telecommunications giant Deutsche Telekom (DT) has decided to purchase an additional five percent stake in Greece’s largest telecommunications company OTE for 284 million euros.

The former national monopolist OTE is 40 percent owned by Deutsche Telekom and is under its management.

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The government in Athens has invited the German company to exercise its option that guarantees it priority in considering the share offer after last month’s tender for the sale of five percent of OTE as part of the international loan assistance program for Greece did not attract investor interest.

The Greek state and the privatization agency HRADF each own five percent of the telecommunications company, while the remaining 50 percent is owned by foreign and domestic institutional and private investors.

HRADF today announced the details of the agreement for DT’s purchase of shares in OTE.

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Privatization is a key issue in the package of international assistance to Greece since 2010, but Athens has so far raised only about 4.7 billion euros, or less than a tenth of the targeted amount of 50 billion euros.

The Greek government intends to raise two billion euros this year from the sale of stakes in refineries, municipal companies in the water management and energy sectors. In this year’s budget, it has earmarked an amount of 250 million euros from the sale of shares in OTE.