e& Announces Majority Stake Acquisition in PPF Telecom for CEE Expansion

The Emirates Telecommunications Group Company, e&, initiated the early stage of discussions with the Czech-based PPF Group regarding a potential partnership in early July, as reported by TelecomTalk. On August 1st, 2023, e& announced the signing of a binding agreement with PPF Group (PPF) to acquire a controlling stake (50 percent + 1 economic share) in PPF telecom assets in Bulgaria, Hungary, Serbia, and Slovakia, according to an exchange filing on August 1st, 2023.

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Also Read: e& and PPF Group Initiate Talks for Potential Partnership

e& Seals the Deal with PPF Group

e& said, this acquisition is in line with its ambition to accelerate international growth and diversify into new geographies. e& aims to establish a strong presence and foster developments within the Central and Eastern Europe (CEE) region.

PPF Telecom: A Strong Player in CEE Markets

PPF Telecom, comprising Yettel Bulgaria, Yettel Hungary, Yettel Serbia, the O2 Slovakia service operations, and the CETIN and O2 Networks infrastructure businesses, serve more than 10 million customers. e& said, in 2022, PPF Telecom reported combined revenues of Euros 1.8 billion and EBITDAaL of Euros 0.7 billion.

The upfront consideration for the acquisition is set at Euros 2,150 million, granting e& a 50 percent +1 share economic stake in both the service and infrastructure companies, with the exception of Hungary, where Corvinus retains a 25 percent stake in the respective businesses.

Additionally, there is a possibility of up to Euros 350 million in earn-out payments if PPF Telecom surpasses certain financial targets within the three years following the closing of the deal.