Romanian telecom group Digi Communications (BVB: DIGI) announced that, following the decision of the local businessman Adrian Tomșa to withdraw from the initial transaction, it entered into a memorandum of understanding (MoU) with Hellenic Telecommunications Organization(OTE) and Vodafone Romania having as subject matter the OTE divestment from its local mobile arm Telekom Romania Mobile Communications (TKRM).

This is the third version of the TKRM divestment operation after OTE announced last November that Tomșa would take over its Romanian mobile arm. First, Digi joined Tomsa in the deal in May.  Now, Tomșa is replaced by Vodafone.

According to the MoU, the parties intend "to carry out a series of interdependent operations and transactions pursuant to which Digi Romania will acquire certain assets from TKRM and Vodafone Romania will acquire indirectly the shares held by OTE in TKRM."

Vodafone Romania will thus become part of the acquisition transaction of TKRM alongside its rival Digi; the two companies are going to divide among themselves, according to a structure that is not yet public, TKRM's assets: natural and legal person subscribers, customers with prepaid cards, the licenses for the radio spectrum, the communications infrastructure (towers, antennas) but also the operator's team of employees.

"Through this transaction, Vodafone will contribute to the creation of a stronger telecommunications market, in which operators will have the necessary size to innovate and to invest substantially in new technologies, positioning Romania as a European leader," announced Vodafone Romania, quoted by Ziarul Financiar.

The completion of the transaction is subject to several conditions, including the finalization of the due diligence process, obtaining the necessary approvals from competent authorities, and the completion and signing of the documentation related to the Transaction.

Earlier this year, in May, Digi announced it reached an agreement to get indirect majority control of Telekom Romania Mobile – the local mobile operator and the last asset of the Greek group OTE that took over the country's incumbent telecom group Romtelecom in a process initiated in 1998.

"Competition-wise, it's more complicated because Digi is a large player in the market," Bogdan Chiritoiu, the head of the national competition body Consiliul Concurentei, commented at that time.

The complications remain in place since Vodafone Romania is also a large player in the market.

Under the agreement announced by Digi on May 27, 2024, West Network Invest, an investment vehicle majority-owned by Digi Romania (DIGI's national branch) and minority-owned by Clever Media group (owned by Tomșa), was supposed to take over a 99.99% stake in TKRM.

Under the new MoU announced on October 31, the Romanian group Digi will only take over certain assets, while Vodafone Romania will indirectly acquire the shares held by OTE in TKRM.

(Photo: Tobias Arhelger/ Dreamstime)

iulian@romania-insider.com