T-Mobile owner, Deutsche Telekom has taken full control of its fully consolidated Czech unit by acquiring the remaining 39.23 percent stake for 800 million Euros ($1.09 billion).
Deutsche Telekom, one of the world's biggest integrated telecommunications companies, announced Monday that it is now in full ownership of T-Mobile Czech Republic after buying the remaining 39.23-percent stake for 800 million Euros ($1.09 billion). The acquisition marks Deutsche Telekom's foray in the eastern European telecommunications market, which is a major contributor to the carrier's revenue.
The owner of T-Mobile wireless carrier bought the remaining stake in its Czech unit, which was a fully controlled and consolidated subsidiary, from the Falcon Group led by Mid Europa Partners LLP. The company also states that the deal does not require regulatory approval and will not have any impact on group revenue and earnings.
"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," Claudia Nemat, Board Member for Europe and Technology at Deutsche Telekom, said in a press release, Monday.
"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."
The Bonn-based carrier has its roots deep in Europe. The company claims to have over 31 million fixed lines and more than 17 million broadband lines as well as 140 million mobile customers as of September last year.
The latest buyout gives the company "more flexibility in managing the company and creating competitive offers," Bloomberg quoted analyst Konrad Ksiezopolski as saying. The carrier is also likely to acquire shares in Hungary and Slovakia.
