Petr Kellner’s PPF investment group has offered to buy shares in O2 Czech Republic from retail investors.
PPF, which owns 83.15% of the Prague-based telco, is offering individuals who were company shareholders as of 15 August 2014 the chance to sell…
Petr Kellner’s PPF investment group has offered to buy shares in O2 Czech Republic from retail investors.
PPF, which owns 83.15% of the Prague-based telco, is offering individuals who were company shareholders as of 15 August 2014 the chance to sell up to 200 shares each for Kc277.15 (US$12.55) per share.
This is on a par with the June offer price, minus a Kc18 (US$0.81) per share dividend.
At the time of writing, O2 CR shares were trading at Kc222.60 (US$10.08), up 5.6% on yesterday’s closing price. The offered 277.15 per share represents a 31% premium on the telco’s closing share price yesterday.
As it is not a public offer, PPF is not allowed to buy more than 1% of O2 CR’s total shares in this transaction. The investment firm expects the tender offer will concern about 40,000 retail shareholders.
Kellner commented: “We want our steps to be absolutely correct and therefore we are giving a second chance to these retail shareholders, who are not professional investors, to sell their shares for a price that matches the price in the mandatory buyout exercise.”
Technically, the tender offer will be run in a similar way to the mandatory offer in June. The acceptance period runs from 1 December this year to 16 January 2015.
PPF boosted its stake from 65.93% to the current 83.15% in late October. Surpassing the 90% threshold would allow a squeeze-out of minority shareholders.
O2 CR okays short-term loan
Meanwhile, the O2 CR board of directors has given the company the green light to enter into a short-term loan of up to Kc4bn (US$181.13m) with the local Komercni banka.
The loan will have a repayment term of three plus three months, with an optional additional six-month extension, the telco said in a statement.
Proceeds will be used to repay liabilities related to commercial dealings with O2 CR’s former majority shareholder, Spain’s Telefonica.
In addition, the board has approved a report on how a loan of up to Kc24.8bn (US$1.12bn) requested by PPF in October would benefit the company.
The report, together with another prepared by an independent adviser, will be published for shareholders, who will have the final say on whether to grant the loan.
The requested loan would be repaid in seven years, with regular interest payments due.
PPF would use the funds to help repay bank debt it took on to acquire its majority stake in the telco from Telefonica earlier in the year.
The Netherlands-based firm financed the KC63.6bn (US$3.32bn) purchase with a Kc35.5bn (US$1.85bn) equity tranche and a €2.89bn syndicated loan.
