UAE’s e& eyes further expansion, acquires Czech PPF Group’s telecom assets

UAE’s e& eyes further expansion, acquires Czech PPF Group’s telecom assets

Image: e& Group

UAE’s e& signed an agreement with PPF Group to acquire a controlling stake in PPF Telecom’s assets in Bulgaria, Hungary, Serbia, and Slovakia.

The transaction, not associated with related parties, will be financed by debt. Once the transaction is closed, e& will fully consolidate the acquired assets under its international vertical, the company said.

Completion of the transaction remains subject to regulatory approvals and certain closing conditions.

PPF Telecom comprises Yettel Bulgaria, Yettel Hungary, Yettel Serbia, and the O2 Slovakia service operations as well as the CETIN and O2 Networks infrastructure businesses in these countries.

The East European telecom company serves more than 10 million customers and enjoys leading positions in its markets.

PPF Telecom posted combined revenues and EBITDAaL (earnings before interest, tax, depreciation and amortisation, and after leases totalled EUR1.8bn and EUR0.7bn respectively in 2022.

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e& and PPF Telecom agreement highlights

The upfront consideration for the acquisition is EUR2.15bn in exchange for a 50 per cent+1 share economic stake in both the service and infrastructure companies (except for Hungary where Corvinus owns a 25 per cent stake in the respective businesses).

The transaction is also subject to up to EUR350m in earn-out payments