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Deutsche Telekom is going to become a major shareholder of Greek OTE with an almost 20% stake that it is going to buy from Marfin Investment Group (MIG). The transfer will be at €26 per share with a total value of €2.5 billion.

ElectronRun run has already covered the situation with OTE prior to today’s news, here. MIG had been methodically buying OTE shares for some time with the ultimate aim of finally controlling the Greek state telecom company. This alarmed the Greek government as the later always sought strategic partners from within the EU. As an emergency measure, a stake limit of a little less than 20% was set (which is what Deutsche Telekom is now receiving) for any private investor of OTE.

What has led to today’s news was probably that MIG realised that it would never get a controlling stake of OTE, a fact that led it to seek by itself a buyer for its OTE shares. The transfer of shares awaits approval from Greek authorities and it is certain that behind this deal there is more details that we will get to know later.

As OTE has been in talks with Deutsche Telekom in the past, it is almost certain that the new situation will be a strategic partnership with further developments coming down the line. Furthermore, the Greek state has made no secret of its intentions to eventually privatise OTE. The fact that OTE currently has large investments in the Balkans, makes it primary target from large European telecom companies. A major stumbling block has been the aging and partly unskilled OTE workforce, something that the state has tried to resolve with an early employee exit scheme.

It is highly doubtful that Deutsche Telekom will settle for a position of simple large shareholder and changes on the OTE board of directors is one of the first expected changes.

Link: Kathimerini