CEE focussed private equity firm Mid Europa Partners and co-investors have sold their 39% stake in T-Mobile Czech Republic (TMCZ) to controlling shareholder Deutsche Telekom (DT). MEP said the total consideration for the stake is €828m. Closing of the…
CEE focussed private equity firm Mid Europa Partners and co-investors have sold their 39% stake in T-Mobile Czech Republic (TMCZ) to controlling shareholder Deutsche Telekom (DT).
MEP said the total consideration for the stake is €828m. Closing of the transaction, which does not require regulatory approvals, is expected by the end of February.
It is thought that the acquisition of the stake was made easier for DT following a number of key developments in the Czech market in the past year, including the US$3.3bn sale of competitor Telefonica CR to PPF and the completion of the 4G spectrum auction, in which TMCZ spent US$130m.
The auction, which saw the three established players buy spectrum, also clarified that no new entrant would threaten to cut into profits going forward.
It is thought that those developments had removed uncertainties and made it easier for DT to price the asset.
The sellers around MEP also considered an IPO of the stake or a secondary buyout before deciding to go for the most obvious option, a sale to the majority stakeholder.
DT plans to merge its business activities in the country, which also include T-Systems Czech Republic and the local operations of GTS Group.
GTS Group was acquired late last year for €546m, allowing the German incumbent to boost its fixed line infrastructure in a number of Central and Eastern European markets.
“The acquisition of the remaining shares [in TMCZ] is a natural step towards optimizing our portfolio and supports our transformation into the leading integrated Pan-European operator,” Claudia Nemat, board member for Europe and technology at Deutsche Telekom, said.
DT said the acquisition would enable it to simplify the capital and governance structure of TMCZ and provide financial benefits, “such as the savings of annual dividend payments to the minority shareholders and an increase in net profit”.
The deal will not impact DT’s group revenue and EBITDA because the unit was fully consolidated in the past already.
Credit Suisse acted as financial adviser for DT, while Clifford Chance was legal adviser.
Mid Europa Partners did not use external advisers.
