Announcing the deal, Deutsche Telekom said that the acquisition of the shares would simplify the capital and governance structure of T-Mobile Czech Republic.
It also said the buyout made financial sense, as it would mean Deutsche Telekom would save on annual dividend payments to the minority shareholders and receive increased net profit.
The 39% T-Mobile Czech Republic stake is currently owned by a consortium of investors, led by private equity group Mid Europa Partners, and the transaction is not subject to regulatory approvals.
“The acquisition of the remaining shares is a natural step towards optimising our portfolio and supports our transformation into the leading integrated Pan-European operator,” said Deutsche Telekom board member for Europe and technology, Claudia Nemat.
“The Czech Republic is an important market for Deutsche Telekom due to its size and structure. 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.”
As T-Mobile Czech Republic is already fully consolidated by Deutsche Telekom, the transaction will have no impact on Group revenue and EBITDA, said Deutsche Telekom.
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