Deutsche Telekom is to acquire the 49% stake in Slovak Telekom it does not already own for €700 million.

According to the German company, this corresponds to a multiple of 3.8x EV/EBITDA, with the shares it is buying being currently held by the National Property Fund of the Slovak Republic.

Slovak Telekom is already a fully consolidated subsidiary of Deutsche Telekom and the transaction will have no impact on the latter’s revenue and EBITDA.

However, it will lead to an increase in earnings per share attributable to the shareholders of Deutsche Telekom.

Under the terms of the agreement, €100m of the purchase price will be set aside in an escrow account for a specific time period.

The transaction is not subject to regulatory approvals and is expected to be completed in the coming weeks.

Commenting on the deal, Claudia Nemat, board member for Europe and Technology at Deutsche Telekom, said: “As the only operator in Slovakia with quad-play capabilities, Slovak Telekom is a highly attractive asset.

“It is the market leader in fixed line, fixed broadband and pay-TV, as well as the second largest mobile player in Slovakia. Furthermore, it is the second of our subsidiaries to already offer an all-IP network, and with the recent introduction of its Magenta One converged fixed mobile services continues to be at the forefront of innovation within our group.”