Communications and IT minister Dan Nica has ruled out the possibility that the shareholders of national telecommunications operator RomTelecom should close down the company's mobile telephony arm Cosmorom.
According to the minister, a capital infusion, a merger or even the company's sale could solve Cosomrom's financial troubles. "The contract that saw Greek group OTE become the main shareholder of RomTelecom stipulates a capital injection, a merger or even the sale, in case there are any problems," Dan Nica said. The minister has also said the capital infusion leaves room for the involvement of an investment fund.
On the other hand, Nica stated the company's shareholders would meet in November, when they would hear the report on Cosmorom, drafted by an investment bank.
"The report is being drafted by Deutsche Bank. Until the report is presented, I cannot elaborate on any solutions for Cosmorom," Nica added.
OTE, the main shareholder of RomTelecom early this month announced its decision to stop investing in Cosmorom. According to sources close to the companies, this means RomTelecom will no longer finance Cosmorom, whereas OTE will not secure a potential loan for the ailing mobile telephony operator.
Cosmorom posted net losses worth 6.6 million euros in Q2, 2003 and revenues amounting to 2.3 million euros. At the end of June, the company had 83,724 customers, down 8.2% from the 91,192 clients registered in the year-ago period. Moreover, the mobile telephony operator owes more than $100 million plus interest to its main equipment supplier, Greek company Intracom.
OTE became the main shareholder of RomTelecom in late January, and now controls 54 percent of the telecom operator.
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