Bulgarian Telecom Companies Announce Price Hike in Response to Inflation
Bulgarian telecommunications companies are set to implement price increases this year, citing the impact of inflation
OTE, Greece's biggest telecoms operator has extended by a month the deadline for bidders in the sale of its Bulgarian unit, Globul.
OTE expects to receive about EUR 700 M from the deal, the site econ.bg informs, citing Reuters' sources.
Interested buyers include the Turkish Turk Telekom and Turkcell, the Norwegian Telenor, and Deutsche Telekom, which has 40% stake in OTE.
The deadline for the bids was March 18, but it has been extended because some of the candidates needed more time to prepare the required documentation.
OTE announced plans for the sale in 2012 in an attempt to refinance its EUR 1.65 B debt by 2014.
At the beginning of March, Chief Executive Michael Tsamaz, said the company might halt plans to sell Globul as it was not as pressing after the company tapped international markets for financing to pay debts due this year and next.
"The problem we had for refinancing mostly has been solved. The process we have for Globul has not stopped, it continues. However, we have to rethink the situation and reconsider the situation and decide based on the best of the shareholders' interest," Tsamaz told analysts.
Globul accounts for about 7% of OTE's sales and about 9% of earnings before interest, tax, depreciation and amortization (EBITDA).
OTE's chief executive said late last year Globul required a lot of investments, which OTE might not be able to provide, to remain competitive in a cut-throat Bulgarian market where customers are increasingly switching to cheaper services such as pre-paid offers.
In Bulgaria, Globul competes with Telekom Austria Mobiltel and Vivacom, recently acquired by Bulgarian banker Tsvetan Vasilev, and Russia's VTB Bank.
We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!
FlixBus, the renowned European bus company, is set to launch new routes to and from Bulgaria in anticipation of the summer season
In a significant development, the Russian army has seized control of the pivotal village of Ocheretyne in the Donetsk region of Ukraine, a strategic location crucial for Ukrainian defense efforts
The price of retail lamb in Bulgaria has surged by 8.4% on an annual basis, according to statistics released by the Ministry of Agriculture and Food, with data sourced from SAPI indicating an average price of BGN 25.27 per kilogram as of April 10
In a concerning revelation, the ad hoc committee investigating the activities of Gleb Myshin uncovered that over the past three to four years, a staggering 343 candidates from the Russian Federation seeking Bulgarian citizenship were discovered to have su
As the summer season draws near, the issue of staffing in the tourism sector in Bulgaria comes to the forefront once again, with the workforce having to depend on individuals from foreign countries for yet another year
According to recent data from the Confederation of Independent Trade Unions of Bulgaria (CITUB), the financial strain on Bulgarian households continues to intensify
UN Happiness Report: Bulgaria's Astonishing Leap in Rankings
Bulgaria: 3 Regions With Lowest Life Expectancy - EU Report 2022