Deutsche Telekom buys rest of T-Mobile Czech Republic for $1.09 bn

Deutsche Telekom today said that it has acquired the remaining stake it does not already own in its T-Mobile Czech Republic subsidiary from a group of investors for €800 million ($1.09 billion).

Bonn-based Deutsche Telekom has acquired the remaining 39.23-per cent stake from Mid Europa Partners and Al Ain.

The deal will give Deutsche Telekom full control of T-Mobile Czech Republic and help the company to advance its plans for a pan-European network.

"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.

"The Czech Republic is an important market for Deutsche Telekom due to its size and structure. With the ongoing integration of T-SystemsCzech 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,'' she added.

The acquisition will simplify the capital and governance structure of T-Mobile Czech Republic and will provide financial benefits, such as the savings of annual dividend payments to the minority shareholders and an increase in net profit, the company said in a statement.

T-Mobile Czech Republic is the largest mobile carrier in the country with 5.8 million customers at the end of 2013.

The company was founded in 1996. It was formerly known as RadioMobil A.S. and changed its name to T-Mobile Czech Republic in 2003.

In addition to mobile and fixed-line telecommunications services, the Prague-based company offers ICT and T-Mobile TV satellite television services.

Last November, Deutsche Telekom sold 70 per cent stake in its classified advertising unit Scout24 Holding GmbH to private equity firm Hellman & Friedman, for about €1.5 billion and acquired GTS Central Europe for €546 million.