United Group announced it signed a purchase agreement for financially troubled Slovenian quad-player T-2, a move that could save the company from bankruptcy, while bolstering its local unit’s mobile and broadband offerings.
In a statement from United Group, Telemach Slovenia CEO Tomislav Cizmic said: "Today's agreement ensures a competitive future for T-2, which was compromised due to the threat of bankruptcy. This acquisition strengthens our capacities for further investment in the most modern mobile and fixed telecommunications infrastructure, advanced technologies, and innovative products and services.”
United Group detailed the transaction will be conducted through its subsidiary Telemach Slovenia, which will purchase shares from T-2 parent company Garnol. The first phase of the deal will see Telemach acquire 24.9% of equity in T-2. Once regulators give the go ahead, it will then acquire a minimum 98.06% of shares as per terms outlined in a signed share purchase agreement.
The acquisition will enable T-2 to “continue its stable development” as well as invest in new technologies and products to enhance user experience. United Group added the merging of Telemach and T-2 will bolster mobile services and fibre networks – increasing 5G network coverage.
“We are convinced that industry consolidation is crucial to maintain competitiveness in the Slovenian market and to advance digitalisation and connectivity, which will strengthen the Slovenian economy in the long term," added Cizmic.
