OTE management estimated that the approvals from the Romanian authorities in order to proceed with the sale of its subsidiary, Telekom Romania Mobile (TKRM), will have been completed by the end of the first half of the year.
If TKRM is finally sold, as the Group management, under the chairman and CEO, Kostas Nebis, said during a briefing, the amount that OTE will receive will be distributed as a dividend.
OTE intends to distribute approximately 98% of the expected free cash flows for 2025, amounting to approximately 460 million euros. The total compensation to shareholders for 2025 will reach approximately 451 million euros and will be divided into a proposed dividend of 298 million and a share buyback program of 153 million euros.
The proposed dividend
The proposed dividend corresponds to 0.7216 per share and will be paid following its approval by the general meeting of shareholders.
Regarding TKRM, OTE has signed a memorandum of understanding (MoU) with Digi and Vodafone Romania (the former is interested in certain assets of OTE’s subsidiary and the latter in its customer base).
However, in order for the sale to proceed, it requires, among other things, the approval of the Romanian Competition Commission, which is estimated to announce its decisions towards the end of the first half of the year.
Based on estimates by OTE management, if TKRM is not ultimately sold within the current financial year, the impact on the Group’s liquidity will be around 70 million euros.
