Telekom Austria completes Bulgaria buys
Telekom Austria has moved a step closer to tapping into growing demand for broadband services in Bulgaria, completing its acquisition of fixed-line operator Megalan Network.
The operator’s local subsidiary Mobitel acquired 80% of Megalan Network late last week, and will acquire the remaining 20% of the firm by end March 2012.
Telekom Austria revealed in September it would spend up to €72 million to acquire Megalan and Spectrum Net as it seeks to tap into predicted growth in fixed broadband, IPTV and convergent products in the country.
Bulgaria has the lowest broadband penetration of all European Union countries, though pay TV penetration stands above 70%.
It completed the acquisition of Spectrum late January, having received clearance from Bulgarian anti-competition authorities in late November.
Both purchases are being financed from existing cash flows, with payment by installment over the course of 2011.
Mobitel will continue to operate the two firms as separate companies until the end of the year, with their results due to be included in its financials from this quarter on.