Emirates Telecommunications Group Company PJSC signed an agreement to acquire a 50% stake in Assets in Bulgaria, Hungary, Serbia and Slovakia from PPF Group N.V. for ?2.5 billion.
August 31, 2023
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Emirates Telecommunications Group Company PJSC (ADX:EAND) signed an agreement to acquire a 50% stake in Assets in Bulgaria, Hungary, Serbia and Slovakia from PPF Group N.V. for ?2.5 billion on August 1, 2023. Under the terms of agreement, The transaction parties have agreed that e& will pay EUR 2.15 billion upfront at the closing for the acquisition of the 50% stake, plus one share in PPF Telecom and additional earn-out payments of up to EUR 350 million within three years after the closing if PPF Telecom exceeds certain financial targets. This is subject to a claw back of up to ?75 million if such financial targets are not achieved. PPF Telecom's existing assets in the Czech Republic, including the Czech operator O2 Czech Republic a.s. (?O2 CZ?) and telecommunications infrastructure provider CETIN a.s. (?CETIN Czech?), will be transferred outside the PPF Telecom Group and not be part of the transaction. PPF will retain its 100% indirect share in O2 CZ and its current indirect share in CETIN Czech. The partners will retain current PPF Telecom?s CEO, Balesh Sharma, and ensure continuity of the operations while drawing on the broad expertise of PPF Telecom?s teams in their markets.
The transaction is subject to regulatory approvals, the consummation of corporate reorganization, the formation of the optimal and efficient capital structure within the transaction perimeter, certain administrative procedures, and other customary closing conditions. As of October 10, 2023, Etisalat by e&, is seeking Bulgarian antitrust authority approval to acquire indirect control over mobile operator Yettel Bulgaria and telecoms infrastructure provider Cetin Bulgaria from Netherlands-headquartered investment firm PPF Group. In addition, the transaction will likely be subject to the EU Foreign Subsidies Regulation review. As of November 30, 2023, the transaction has been approved by the Antimonopoly Office of the Slovak Republic. The transaction is expected to close in or before the first quarter of 2024. As of February 19, 2024, Bulgaria's competition authority has approved the planned divestment by PPF Holdings.
JPMorgan Chase & Co. acted as financial advisor to Emirates Telecommunications Group. Alexandra Doytchinova, Luka Lopicic, Christoph Haid, Kinga Hetényi, Sona Hekelová, Michal Lucivjanský, Adrián Menczelesz and Pavle Eric of Schoenherr acted as legal advisors to Emirates Telecommunications Group Company PJSC. Craig D. Jones, Juan Rodriguez, John Horsfield-Bradbury, Umberto Hassan and Andrew Thomson of Sullivan & Cromwell London acted as legal advisor to Emirates Telecommunications Group Company PJSC. Dora Petranyi, Chris Watson of CMS Cameron McKenna Nabarro Olswang LLP acted as legal advisor to Emirates Telecommunications Group Company PJSC (ADX:EAND). Jan Andrusko, Caroline Sherrell, Jan Stejskal, Jan Jakoubek, Jonathan Weinberg, and Petr Hudec of White & Case, Milo? Jakovljevic, and Bojan Vuckovic of Karanovic & Partners and Violetta Kunze, Nikolai Gouginski, and Valentin Bojilov of Djingov, Gouginski, Kyutchukov & Velichkov advised the PPF Group.
Emirates Telecommunications Group Company PJSC is United Arab Emirates-based telecommunications service provider. The Companyâs principal activities include provision of telecommunications services, media and related equipment including the provision of related contracting and consultancy services to international telecommunications companies and consortia. The Company along with it's subsidiaries offers solutions and services, such as information and communication technology (ICT), landline, mobile and Internet, voice, data and connectivity services, mobile and wireless, payment, security and messaging services and digital solutions, among others. The Companyâs wholly owned subsidiaries include Emirates Telecommunications and Marine Services FZE, Emirates Cable TV and Multimedia LLC, Etisalat Services Holding LLC, Help EG and Etisalat International Pakistan LLC, among others. The Company operates approximately in 15 countries across Asia, the Middle East and Africa.
Emirates Telecommunications Group Company PJSC signed an agreement to acquire a 50% stake in Assets in Bulgaria, Hungary, Serbia and Slovakia from PPF Group N.V. for ?2.5 billion.