Ljubljana, 22 October (STA) - Telekom Slovenije and Telekom Austria, rivals in the Slovenian mobile services market, have decided to join strengths in Macedonia, merging their subsidiaries. Telecom Austria will hold a majority, 55% stake, in the new merged company, Slovenia's national telco Telekom Slovenije said in a press release on Wednesday.
The agreement also includes call and put options for the exit of Telekom Slovenije from the joint venture within three years after the merger, said the press release published on the web page of the Ljubljana Stock Exchange.
The deal is pending approval of the Macedonian telecommunications regulator and will expectedly be completed in the first quarter of 2015, following a due diligence at Telekom Slovenija's subsidiary One which is expected for mid November.
Telekom Slovenije moreover said that its activities on the Macedonian market were in line with its business plans but refused to reveal any additional details.
Telekom Slovenija's subsidiary holds a 23.6% market share in Macedonia. It is the second biggest communications services provider and the third biggest provider of mobile services in Macedonia. It has some 528,000 mobile users and 640,000 users in total.
Telekom Slovenija's One and its subsidiary Digi Plus generated EUR 75.5m in revenue in 2013 and EUR 14.4m in earnings before interest, taxes, depreciation, and amortization (EBITDA).
Telekom Austria's Vip holds a 28.1% stake in Macedonia's mobile market and is the second biggest mobile operator in the country. The company generated EUR 65m in revenue in 2013 and EUR 14.7m in EBITDA.