Telefonica is reportedly close to disposing its 69% stake in Telefonica Czech Republic to PPF Group, the investment vehicle of Czech billionaire Petr Kellner.
The two parties said they were in talks earlier this month about a deal for the Czech unit,…
Telefonica is reportedly close to disposing its 69% stake in Telefonica Czech Republic to PPF Group, the investment vehicle of Czech billionaire Petr Kellner.
The two parties said they were in talks earlier this month about a deal for the Czech unit, which has a market value of €2.6bn (US$3.6bn).
The deal is not likely to include a premium on the current share price, rather it will include future performance-related payments which will be staggered, Bloomberg reported referencing two people familiar with the matter.
Telefonica is said to have hired Goldman Sachs and Societe Generale to manage the sale process.
A sale would follow Telefonica’s disposal of its Irish unit to Hutchison Whampoa for €850m earlier this year, which is awaiting antitrust clearance from the European Commission.
In addition to the disposals, the Madrid-based group has been working on increasing its stake in Telecom Italia’s controlling shareholder group, Telco, through a €441m investment. Telefonica has also agreed a deal to buy KPN’s controlling stake in German operator E-Plus for €8.55bn.
Telefonica is aiming to cut its debt pile from about €51bn to €47bn by the end of the year.
