The Hellenic Telecommunications Organization SA (OTE SA) announces that, following the decision of OTE Estate?s Board of Directors, the Extraordinary General Meeting of Shareholders of its subsidiary OTE Properties REIC has decided to proceed with the dissolution and liquidation of OTE Properties REIC.
OTE Properties REIC, the real estate investment company of the OTE Group, had received in June 2008 an operation license from the Hellenic Capital Markets Commission with a final deadline to be listed on the Athens Stock Exchange by October 7, 2011.
The current economic and financial environment, characterized by lack of liquidity and oversupply of commercial real estate is not favorable for the development of real estate investment companies. This is also evidenced by the steep fall in the index of listed real estate companies during the previous year. Given these developments, a listing of the real estate investment company on the Athens Stock Exchange would not constitute the optimal move from a strategic point, in the context of a value release from the Group?s substantial real estate assets.
The dissolution of OTE Properties REIC does not affect in any way the broader strategy of OTE to extract value from its significant real estate assets, a strategy implemented by its subsidiary OTE Estate.