The Czech central bank has approved investment group PPF’s mandatory takeover offer price of Kc295.15 (US$14.68) per share to buy out minority investors in Telefonica Czech Republic.
PPF, controlled by Czech businessman Petr Kellner, said in a…
The Czech central bank has approved investment group PPF’s mandatory takeover offer price of Kc295.15 (US$14.68) per share to buy out minority investors in Telefonica Czech Republic.
PPF, controlled by Czech businessman Petr Kellner, said in a statement that the other terms and conditions of the takeover offer will be included in an offer document to be published by 3 June. The Netherlands-based company has declined to comment further on the matter before then.
The investment firm has submitted the approved offer document to Telefonica CR to obtain a statement from it. Once the document has been assessed by the target company and published, the mandatory tender offer will become formally effective.
PPF completed its Kc63.6bn (US$3.32bn) acquisition of a 65.9% stake in Telefonica CR, which will change its name to O2 Czech Republic, from its Spanish parent in late January. The deal also includes Telefonica Slovakia.
PPF is required under Czech law to make a mandatory takeover bid for shares held by minority investors. Spanish incumbent Telefonica will retain a 4.9% stake in O2, which is traded on the Prague Stock Exchange, but may sell up to PPF four years after the closing of their deal.
The Kc295.15 offer price reflects the Kc305.6 (US$15.20) per share paid to Telefonica – Kc305.6 (US$15.20) – discounted to account for the €404m to be paid to Telefonica over four years. This would value the buyout at about Kc27.2bn (US$1.35bn), excluding the 4.9% stake to be retained by Telefonica.
The Patria analysts said the minority takeover could be completed within the next few weeks or months.
Telefoncia CR has a market cap of Kc94.69bn (US$4.72bn) and its shares were trading on the stock exchange at the time of writing at Kc300 (US$14.94) each.
