Turk Telekom places bid for two Bulgarian telecom firms

ISTANBUL - Reuters

Turkey’s biggest telecom company, Turk Telekom, announced that they had placed a binding bid for the purchase of Bulgaria’s second biggest operator, Cosmo Bulgaria Mobile (Globul) and Germanos Telecom Bulgaria, as part of its regional enlargement strategy.

Last month, Greece-based telecommunication operator OTE extended the due date of the offers for its Bulgaria unit, Globul, until April 18. Globul, which is expected to reach a value of 700 million euros, also drew the interests of Telenor and Deutsche Telekom, as well as Turkish companies Turkcell and Turk Telekom, sources said.

Germanos Telecom Bulgaria is operating in the field of telecommunication retail as another Bulgarian branch of OTE Group.

“The 140 percent mobile penetration rate in Bulgaria is above the average rates of both Europe and developed countries, which are 121 and 122 percent respectively. Globul could provide a considerable value for Turk Telekom as long as it is purchased for a reasonable price,” Ata Investment’s notes on Turk Telekom’s bid read. Meanwhile, another Turkey-based operator, Turkcell, announced in November that they had placed a nonbinding bid for Globul. However, the company has not yet issued any official statement with regards to a binding bid.