Zapp", acquired by "Cosmote" for EUR 207 million

Cosmina Capalău

Mobile telephony operator "Cosmote Grup" on Tuesday signed the agreement for acquiring "Telemobil SA", the operator of the "Zapp" network in Romania. The amount paid for acquiring the shares of "Zapp" is estimated at approximately EUR 61 million, with "Cosmote" to also take on the debts and liabilities of "Zapp", estimated at approximately EUR 146 million, most of them tied to the expansion of the 3G and CDMA networks (ed. note: Code Division Multiple Access - high bandwidth technology). Thus, the acquisition of "Zapp" will cost around EUR 207 million.

"We are happy to have completed the negotiations with "Cosmote Grup" on the sale of "Zapp" Romania and we are waiting for the transaction to be successfully completed", said Nadim Akkaoui, Corporate Finance manager for "Saudi Oger" Group. He went on to say that "this transaction comes after a period where we invested in the company"s infrastructure, during which time Zapp performed major works for the expansion of its coverage and launched new services. "Zapp" Romania made big strides in developing the 3G and EV-DO networks (ed. note: Evolution, Data Only - high bandwidth wireless connection), and now covers over 70% of Romania"s population when it comes to high speed mobile data services. The addition of Zapp"s high speed mobile internet services to Cosmote"s service portfolio will be beneficial for both companies and for their customers", the official of "Saudi Oger" group said.

Following the signing of the share purchase agreement, Mr. Michael Tsamaz, CEO of "Cosmote", said that "the deal marks the beginning of a new stage of growth and expansion of "Cosmote" Romania"s customer base, given that the 3G and CDMA licenses, as well as the infrastructure allow the company to offer the most competitive data and voice services in Romania". Mr. Michael Tsamaz said that "operating on the most active and competitive European markets, and within just three years and a half from its creation, the evolution of "Cosmote" Romania proves that it can use the benefits of this new investment to the fullest".

According to officials of the two companies, the completion of the sale is subject to the conclusion of terms and obligations specific to this kind of transactions, including the agreement of the authorities in the field.