Orange Romania's controlling stake in TKR means that the remaining 46% stake is retained by the Romanian State. With the necessary regulatory approvals, the enterprise value of TKR is €497 million, based on 100% ownership and its convergent customer base, therefore Orange Romania's stake corresponds to an equity value of €296 million.
“Today is a landmark day for Orange as this acquisition will propel Orange Romania forward in its convergence ambitions," said Mari-Noëlle Jégo-Laveissière, deputy CEO of Orange in Europe.
"Convergence is the key to our growth across Europe, and Romania is a key part of the Group’s European success story.”
This transaction will accelerate Orange’s strategy to become the preferred convergent services provider in Romania. In addition, the acquisition combined with Orange's existing network assets will create a fully fixed and mobile convergent operator across consumer, business and ICT markets.
Both companies will continue to operate as two separate legal entities with Liudmila Climoc (pictured) continuing to serve as CEO of Orange Romania and the newly appointed Andrei Popovici, as CEO of TKR.
“We are part of a defining moment not only for Orange, but for the entire telecoms market in Romania. I am very proud that Orange Romania and TKR teams have reached this point. We now move forward together, as a joint force and with a common goal – to be the first choice for convergent services in Romania," said Climoc.
"Together, we will build for our customers a complete offer with extended fixed coverage, mobile services from Orange, including expanding 5G coverage, more varied TV content and ICT solutions that support the digital transformation of businesses and public administrations.”
As Romania’s second largest player in fixed telecoms, TKR has revenues of €633 million, as published in its 2020 reporting. Through its fully owned network infrastructure, TKR provides fixed voice, broadband and pay-tv services to roughly five million customers and its 90,000km fibre network connects almost three million households.
TKR also provides convergent services to close to 916,000 fixed-mobile convergent subscribers, as of 30 June 2021, through its MVNO contract with Telekom Romania Mobile. These customers will be migrated to Orange Romania’s network following the completion of the transaction.
