OTE Sells Satellite Unit

OTE Sells Satellite Unit

OTE sells satelliteGreece΄s biggest telecoms operator OTE said on Thursday it agreed to sell its satellite unit Hellas SAT to Saudi Arabia-based Arabsat for 208 million euros as part of measures to cut its debt.

OTE, managed and partly-owned by Germany΄s Deutsche Telekom , has been cutting costs and selling assets to cope with its debt load amid a severe austerity-fuelled recession in its two biggest markets, Greece and Romania, Reuters informs.

“We achieved a significant agreement,” said OTE΄s Chief Executive Michael Tsamaz in a statement adding that the value of the deal was “satisfying”.

The transaction is expected to be completed in the second half of the year, OTE said in a statement.

Standard and Poor΄s on Monday upgraded OTE΄s credit rating after the company sold 700 million euros ($937 million)of new bonds on Jan.30, in a sign of debt markets gradually opening for the cash-strapped country΄s firms.

OTE has also said it plans to sell its Bulgarian unit Globul, but sources have said that it might reconsider the sale after the successful bond issue last month.
(source: Reuters, Capital)