2 Min Read
WARSAW, June 12 (Reuters) - Deutsche Telekom AG (DT) is close to finishing due diligence on a possible bid for Poland-based GTS Central Europe, part of efforts to strengthen its regional position, market sources told Reuters.
German media had last month reported DT was considering buying GTS CE for 600 million euros and was also looking into buying the remaining stake of almost 40 percent in its T-Mobile unit in the Czech Republic.
GTS, which in 2012 achieved a 4 percent rise in core profit or EBITDA to 103 million euros ($137 million) on revenue of 387 million, runs a fibre optic and data centre network in Poland, Czech Republic, Hungary, Slovakia and Romania.
"Deutsche Telekom is near to closing the due diligence in GTS," one market source said on a condition of anonymity. "The Czech Republic and Slovakia are seen as their prime interest, with Poland a bit lower down the scale."
Another source said: "The potential deal should be just weeks away. It is all about reaching some agreement on price."
GTS CE is owned by the Innova Capital fund. Krzysztof Krawczyk, the Innova partner in charge of the asset, was not immediately available for comment.
A Deutsche Telekom spokesman had no immediate comment.
Deutsche Telekom also runs Poland's No.3 mobile network T-Mobile with over 16 million clients. ($1 = 0.7533 euros) (Reporting by Adrian Krajewski and Pawel Bernat; Additional reporting by Harro Ten Wolde in Frankfurt; Editing by David Holmes)