Abu Dhabi’s Emirates Telecommunications Group Co. agreed to buy a controlling stake in PPF Telecom Group’s assets in Bulgaria, Hungary, Serbia and Slovakia for EU2.15 billion, following through on its plan to boost its global presence.
(Bloomberg) — Abu Dhabi’s Emirates Telecommunications Group Co. agreed to buy a controlling stake in PPF Telecom Group’s assets in Bulgaria, Hungary, Serbia and Slovakia for EU2.15 billion, following through on its plan to boost its global presence.
Emirates Telecom signed a binding agreement for a controlling stake in PPF’s service and infrastructure companies in the countries, according to a statement Tuesday, except for Hungary where Corvinus Nemzetkozi Befektetesi Zrt owns a 25% stake in the businesses.
The deal comes after the $60 billion Abu Dhabi-based behemoth said it has the “capacity and the wallet” to invest, Chief Executive Officer Hatem Dowidar told Bloomberg TV earlier this year, adding that his focus was on opportunities in Europe, Asia and Africa.
PPF Telecom, part of the Czech billionaire Kellner family’s business empire, is made up of Yettel Bulgaria, Yettel Hungary, Yettel Serbia, O2 Slovakia, and CETIN and O2 Networks infrastructure businesses in those countries.
The Kellner family, which has a net worth of $12.1 billion according to the Bloomberg Billionaire Index, is looking for potential acquisition targets in Europe as part of a strategy to shift its investment focus back to western markets following years of expansion in Asia.
The deal includes as much as EU350 million in milestone payments if PPF exceeds certain targets, and has a claw back provision of as much as EU75 million if it doesn’t.
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