Deutsche Telekom said on Monday that Greece will sell another 10% of the shares in Hellenic Telecom (OTE) to Deutsche Telekom for around €400 million, according to Dow Jones Newswires.
The Greek government has informed the company that it will exercise its put option to sell the stake, of around 49 million shares, to Deutsche Telekom.
After the transaction, Deutsche Telekom will hold 40% plus one share of OTE΄s voting rights, while the Greek state will only hold 10% plus one vote, according to the news agency.
While not material in the longer term, the positive aspect is that Telekom "is buying further into OTE, an asset that they are committed to, at practically distressed prices, given that the current price is 75% below what they originally paid, and the fact that the Greek government is a forced seller," Societe Generale said.
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