Orange Romania acquires Telekom Romania Communications

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23h | Nathalie Bannerman

Orange Romania has finalized the acquisition of 54% of the capital of the fixed operator Telekom Romania Communications (TKR).

Orange Romania’s majority stake in TKR means that the remaining 46% is retained by the Romanian state. With the necessary regulatory approvals, the enterprise value of TKR is 497 million euros, based on a 100% stake and its convergent customer base, therefore Orange Romania’s stake corresponds to a net worth of 296 million euros.

“Today is a milestone day for Orange because this acquisition will propel Orange Romania forward in its ambitions of convergence,” said Mari-Noëlle Jégo-Laveissière, Deputy CEO of Orange in Europe.

“Convergence is the key to our growth in Europe, and Romania is a key element of the Group’s European success story. “

This transaction will accelerate Orange’s strategy to become the preferred convergent service provider in Romania. In addition, the acquisition combined with Orange’s existing network assets will create a fully fixed and mobile converged operator in the consumer, business and ICT markets.

The two companies will continue to operate as two separate legal entities, with Liudmila Climoc (pictured) continuing as CEO of Orange Romania and newly appointed Andrei Popovici as CEO of TKR.

“We are part of a watershed moment not only for Orange, but for the entire telecommunications market in Romania. I am very proud that the Orange Romania and TKR teams have reached this stage. We are now moving forward together, as a joint force and with a common goal: to be the first choice for converged services in Romania, ”Climoc said.

“Together, we will build for our customers a complete offer with extended fixed coverage, Orange mobile services, including extended 5G coverage, more varied TV content and ICT solutions that support the digital transformation of businesses and public administrations. . “

As the second largest player in fixed telecommunications in Romania, TKR has a turnover of 633 million euros, as published in its 2020 report. Through its wholly owned network infrastructure, TKR provides fixed, high voice services. speed and pay-TV to approximately five million customers and its 90,000 km fiber-optic network connects nearly three million homes.

TKR also provides converged services to nearly 916,000 convergent fixed-mobile subscribers, as of June 30, 2021, through its MVNO contract with Telekom Romania Mobile. These customers will be migrated to the Orange Romania network at the end of the transaction.

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