Hrvatski Telekom (Reuters: HT.ZA; Bloomberg: HTRA CZ), Croatian leading telecommunications services provider, announces that today it has received the Decision of the Croatian Competition Agency by which the duration of temporary management rights of the company Optima Telekom d.d. for Hrvatski Telekom is prolonged for an additional three-year period, that is, until 10 July 2021.
The Agency has also reached the decision on conditional approval of the concentration pursuant to the Merger Agreement of the company H1 TELEKOM d.d. into the company OT – OPTIMA TELEKOM d.d.
We would like to recall that on 19 March 2014, the Croatian Competition Agency approved the concentration of HT and OT – Optima Telekom d.d. (hereinafter: Optima) for a limited four-year period until 9 July 2018.
On 29 July 2016, Optima submitted to the Croatian Competition Agency an Application for Intended Concentration pursuant to the Merger Agreement of H1 TELEKOM d.d. into Optima.
Following these changed circumstances HT has submitted a request to prolong the temporary management of Optima until the year 2021.
By the approved prolongation of management of Optima for HT, albeit for a limited time period and with strict regulation and supervision by the CCA until July 2021, the aforementioned merger of H1 into Optima shall achieve its full potential through the effect of intercompany synergies, thus enabling significant improvement of business efficiency and cost reduction in relation to the standalone business activities of H1 and Optima, thereby also ensuring the fulfilment of their financial obligations arising from pre-bankruptcy settlements.
Related decisions CCA will make public through its internet site and Official Gazette.