Telecom Austria grabs 70% of MDC

Telekom Austria has agreed to take a seventy percent stake in Cypriot SB Telecom which is currently held by Ead Samawi and his partners. This corresponds to an enterprising value of seven hundred and thirty Euros. The deal is subject to the approval of anti trust assessors

Telekom Austria has additionally made a move for the final thirty percent, by putting in a call and put option which would be exercisable in the fourth quarter of 2010 for approximately three hundred and twenty million Euros.

Telekom Austria will acquire MDC through its subsidiary of it’s mobile communication arm Mobilkom Austria.

Ead Samawi will remain chairman of SB Telecom and all executive positions within both SB Telecom and MDC will be through Telekom Austria which wil have full control

MDC operates its mobile services under the Velcom and Privet services for post paid and pre paid services respectively.