Deutsche Telekom and GTS Central Europe close to striking a deal

Newsroom 14/06/2013 | 10:36

Deutsche Telekom AG (DT) is close to finishing due diligence on a possible bid for Poland-based GTS Central Europe, part of efforts to strengthen its regional position, according to Reuters, which quotes market sources.

“The potential deal should be just weeks away. It is all about reaching some agreement on price,” according to the sources quoted by Reuters.

The German media reported last month that Deutsche Telekom was considering buying GTS Central Europe for EUR 600 million.

In Romania, Deutsche Telekom has shares in Cosmote Romania, Romtelecom and Germanos GSM store network. DT appointed Nikolai Beckers as the CEO of the companies, who will also be in charge with managing the Romtelecom- Cosmote possible merger on the market and potentially listing the two companies on the stock exchange.

GTS runs a fiber optic and data center network in Poland, Czech Republic, Hungary, Slovakia and Romania, says Reuters.

In Romania, GTS CE posted revenues of EUR 20 million in 2012. The company’s earnings before taxes, interest, depreciation and amortization (EBITDA) amounted to EUR 5 million, up 10 percent versus 2011.

A takeover of GTS CE would increase the DT presence in Romania.