Greece sells stake in its sole satellite

OTE, controlled by Germany's Deutsche Telekom, will raise €208m by selling a 99.05% stake in Hellas Sat in addition to another €7m in dividends, the company said.

The satellite HellasSat2 had been jointly launched by Greece and Cyprus in 2003 and has more than 100 clients in 26 countries in Europe, the Middle East and Africa.

"We have achieved an important agreement," OTE chairman and chief executive Michael Tsamaz said.

"The Greek and Cypriot states will acquire a reliable investor who has the resources to make the necessary investments," he said. Hellas SAT earned €31m in 2012.

Tsamaz said the deal, which is expected to be concluded in the second quarter of the year, would "safeguard the sovereign rights of Greece and Cyprus in space".

"Greek state aerospace company EAV, which is one of the minority shareholders of Hellas Sat and is up for privatisation, would remain on board and retain preferential rights," OTE said, adding that ArabSat is the main provider of satellite services in the Middle East and Africa and ranks among leading service providers globally.

Source: AFP via I-Net Bridge