Abu Dhabi-based Emirates Telecommunications Group has agreed to buy a controlling stake in PPF Telecom Group in Bulgaria, Hungary, Serbia and Slovakia for 2.15 billion euros, as part of its plan to boost its global presence.
The Abu Dhabi-listed firm said it bought a 50 per cent plus 1 share stake in the European company.
The perimeter will comprise the Yettel Bulgaria, Yettel Hungary, Yettel Serbia, and O2 Slovakia operations, with more than 10 million subscribers and leading positions in their respective markets, as well as the CETIN and O2 Networks infrastructure businesses in these countries.
The upfront consideration for the acquisition is €2,150 million. The transaction is also subject to up to €350 million in earn-out payments to PPF if the PPF Telecom assets exceed certain financial targets within the three-year period after closing and is subject to a clawback if such financial targets are not achieved.
PPF Telekom, part of the business empire of the Kellner family from the Czech Republic, consists of Yettel Bulgaria, Yettel Hungary, Yettel Serbia, O2 Slovakia and infrastructure companies CETIN and O2 Networks in those countries.
The Kellner family, whose net worth is estimated by the Bloomberg Billionaires Index at $12.1 billion, is eyeing potential acquisition targets in Europe as part of a strategy to shift its investment focus back to Western markets after years of expansion in Asia.
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