Czechia's PPF Group completes major deal with Dubai-based telecomms player

In a landmark transaction, Czech investment company PPF has finalized a deal with Dubai-based telecommunications giant e&, selling a 50 percent stake (plus one share) in its European telecommunications companies for CZK 54.2 billion. This is one of PPF's biggest-ever deals.

The agreement, announced Oct. 24, marks a significant partnership between the two large companies, creating a joint venture that will become the largest telecommunications player in Central and Southeast Europe. The deal, described by PPF Executive Director Jiří Šmejc as "one of the largest transactions that PPF has ever implemented," has been in the works for over a year and a half.

Under the terms of the agreement, the e& company will acquire a majority stake in PPF's telecommunications companies in Bulgaria, Hungary, Serbia, and Slovakia. However, PPF will retain a 100 percent indirect stake in O2 Czech and its existing stake in CETIN Czech (a telecommunications infrastructure company). The company will also complete the takeover of a 30 percent stake in parent company CETIN Group from the Roanoke Investment company.

Existing managers will lead the joint venture, who have been given new performance targets for the next three years. According to current information, the alliance's primary focus will be on acquiring other companies in the telecommunications sector.

PPF, which operates in 25 countries and invests in various industries, including financial services, media, and biotechnology, will benefit from e&'s large presence in the telecommunications sector. The Arab firm, formerly operating under the Etisalat brand, is the second-largest telephone operator in the Arab world and operates in 16 countries.

The transaction is subject to regulatory approvals and is expected to be completed in the coming months.

PPF, founded by Czechia formerly richest man Petr Kellner before his untimely 2021 death, recently diversified its portfolio by acquiring a 15 percent stake in InPost, a Polish company that operates self-service mailboxes and logistics centers. At the start of this year, the Czech-founded investment firm sold its consumer finance division Home Credit Group in Asia.

As of end-2023, PPF Group owned assets exceeding EUR 43 billion (over CZK 1 billion). Its  beneficiary owner, Renáta Kellnerová, is Czechia’s richest person.