Investment group PPF has completed its Kc63.6bn (US$3.32bn) acquisition of a 65.9% stake in Telefonica Czech Republic from its Spanish parent.
In short statements, both Netherlands-based PPF, founded by Czech billionaire Petr Kellner, and Telefonica CR…
Investment group PPF has completed its Kc63.6bn (US$3.32bn) acquisition of a 65.9% stake in Telefonica Czech Republic from its Spanish parent.
In short statements, both Netherlands-based PPF, founded by Czech billionaire Petr Kellner, and Telefonica CR acknowledged the closing of the acquisition, which also includes Telefonica Slovakia.
The deal received clearance from the European Commission earlier this month.
PPF is now required to launch a mandatory takeover offer for shares held by minority investors in Telefonica CR, which is traded on the Prague stock exchange.
Madrid-based Telefonica will retain a 4.9% stake, but may sell this to PPF after a four-year period. Telefonica and Telefonica CR will also remain commercial and industrial partners for four years.
PPF said it will submit a proposal for the takeover offer to the Czech National Bank (CNB) within the legally-required period so it can launch the offer on schedule. The company added it will not comment further on the takeover offer or its plans for Telefonica CR and Telefonica SK before the CNB approves the offer document.
PPF and Telefonica first announced the deal, which will also see the former pay the latter €404m (US$545.16m) over the next four years, in November last year. The investment firm is financing the deal with an equity tranche of Kc35.5bn (US$1.85bn) and a €2.89bn syndicated loan led by Societe Generale.
The transaction values the whole of Telefonica CR at about €4.4bn (US$5.94bn), or an EV/2014E EBITDA multiple of about 5.8x.
