The sources said Romtelecom’s board approved the rebranding move in a meeting Tuesday. Cosmote, the mobile operator also owned by OTE, is also set to be rebranded as T-Mobile.
Romtelecom is 54% owned by Greece’s OTE, in turn owned by Deutsche Telekom. The Romanian state owns the remaining 46% in Romtelecom.
Romtelecom’s rebranding is expected to cost EUR10 million, including advertising and the remodeling of stores.
Romania could benefit from listing Romtelecom under a Deutsche Telekom brand
Romania’s Information Society Ministry has also agreed to the rebranding, hoping the move would have a positive impact on its plan to list Romtelecom on the stock market. “Switching to a Deutsche Telekom brand will be advantageous for Romania. It will have a positive impact on the stock market lsiting,” said people close to the talks.
Romania’s Government resumed last year plans to sell its stake in Romtelecom and has recently selected and signed on with advisers and lawyers. The team consists of Swiss Capital, the largest broker on the Bucharest Stock Exchange, Swiss investment bank UBS, Banca Transilvania’s brokerage firm BT Securities, and law firms Musat & Asociatii and Bulboaca si Asociatii.R
On the other hand, Romania’s approval of Romtelecom’s rebranding operation under a Deutsche Telekom brand, and a simultaneous rebranding operation targeting Cosmote, is practically the equivalent of a merger between the two companies, but one for which no one is willing to take any responsibility, one source commented. “It is not clear what the Romanian state has to gain from a merger and what control it would have over the company’s shares,” the source added.