Croatia’s Competition Agency AZTN has conditionally allowed the concentration of the incumbent Hravtski Telekom (T-HT) with Optima Telekom (OT).
However, further activities will be required before T-HT is allowed to buy the alternative telco.
In statement, T-HT says that it originally submitted a request to AZTN for approval of the concentration with OT on June 28, 2013. This request was based on a proposal for the financial and operational restructuring of OT as part of OT’s pre-bankruptcy settlement procedure.
The proposal for financial and operational restructuring anticipates that, along with other creditors, the two largest creditors of OT – Zagrebacka banka d.d. and T-HT – shall convert their claims into Optima’s share capital.
The bank and T-HT have since agreed their relationship with respect to OT after the implementation of the alternative telco’s pre-bankruptcy settlement.
AZTN says that the concentration of T-HT and OT should be limited to four years, starting from T-HT’s acquisition of control over OT.
After the third year, T-HT shall initiate a sales procedure for all its shares in OT, wherein it shall also have the right to sell OT shares held by Zagrebacka banka.
After the expiry of the four-year concentration period, the contract between Zagrebacka banka and T-HT will end, as will T-HT’s control over Optima. T-HT shall upon expiry of the concentration transfer its management rights arising from its shares in OT to Zagrebacka banka or a third party which is not related to T-HT and shall authorise Zagrebacka banka to sell all T-HT’s shares in Optima.
Both T-HT and Optima Telekom are key players in Croatia’s pay-TV market.
