LONDON - The German telecommunications giant Deutsche Telekom agreed on Monday to buy the remaining stake in its Czech unit that it did not already own for $1.1 billion.
Under the terms of the deal, Deutsche Telekom will acquire for 800 million euros the outstanding 39.23 percent of T-Mobile Czech Republic from a consortium of financial companies, including the private equity firm Mid Europa Partners.
As competition among Europe’s largest telecoms firms continues, Deutsche Telekom has turned its attention to Central and Eastern Europe as a potential growth area.
“The acquisition of the remaining shares is a natural step towards optimizing our portfolio and supports our transformation into the leading integrated pan-European operator,†said Claudia Nemat, one of Deutsche Telekom’s board members. “The Czech Republic is an important market for Deutsche Telekom.â€
Shares in the German company fell less than 1 percent in morning trading in Frankfurt.
The German company’s push into Eastern European markets also includes an agreement reached in November to buy the Polish fixed-line provider GTS Central Europe for €546 million.
Deutsche Telekom, which will report its full-year earnings early next month, generated more than a fifth of its third-quarter revenue, or around €3.4 billion, from its operations in Central and Eastern Europe.
Credit Suisse and the law firm Clifford Chance advised Deutsche Telekom on the deal.
