Telecom service provider Deutsche Telekom has acquired the remaining 39.23 percent stake of T-Mobile Czech Republic for 800 million euros ($1.09 billion) from private equity group Mid Europa Partners.
The objective of the acquisition is to take control of the telecom business in Czech Republic.
Recently, there were reports that American telecom operator Sprint has started negotiations with Deutsche Telekom to buy T-Mobile USA.
“The acquisition of the remaining shares is a natural step towards optimizing our portfolio and supports our transformation into the leading integrated Pan-European operator,” said Claudia Nemat, Board Member for Europe and Technology at Deutsche Telekom.
With the ongoing integration of T-Systems Czech Republic and the planned combination with the Czech operations of GTS Group, T-Mobile Czech Republic is on a clear strategic path to enhance its fixed-line capabilities and foster its market position in B2B.
The acquisition of the remaining shares enables a simplification of the capital and governance structure of T-Mobile Czech Republic. In addition, the transaction provides financial benefits, such as the savings of annual dividend payments to the minority shareholders and an increase in net profit.
The German telecom operator plans to offer an integrated structure of mobile-phone networks and landlines across Europe, Reuters reported.
Last November, Deutsche Telekom purchased GTS Central Europe for 546 million euros in a deal that earned the Bonn-based company a fibre optic fixed-line and infrastructure business in Eastern Europe.
