All decks have been cleared and Emirates Telecommunications Group Company (e&) has completed the successful acquisition of a controlling stake (50 per cent +1 economic share) in PPF Telecom’s assets in Bulgaria, Hungary, Serbia and Slovakia.
The UAE telecom giant had earlier said in September that it had received a critical go-ahead from the European Commission.
€2.15 billion e& PPF Telecom deal
The holding company will now be called ‘e& PPF Telecom’.
This transaction value is €2.15 billion, plus an adjustment of €200 million to account for e& PPF Telecom’s lower debt position and better working capital.
The transaction is also subject to up to €350 million in earn-out payments to PPF Group if e& PPF Telecom exceeds certain financial targets within the three-year period after closing. It is subject to a clawback of up to €75 million if these financial targets are not achieved.
PPF Group also has a put option, exercisable five years after closing, for its remaining shares of e& PPF Telecom, while e& also holds a reciprocal call option for the same shares.
The investment is a major milestone in e&’s international strategy to scale and add further resilience to its operational profile through expanding into Central and Eastern Europe’s telecom market.
In a statement, Karim Bennis, Group Chief Financial Officer, said: “The market is benefitting from robust economic growth and stable regulatory environment and provides e& with exposure to stable currencies.
“With its leading retail position in the markets where it operates, supported by its high-quality assets, superior network coverage, growing customer base and sustained strong fundamentals, e& PPF Telecom will further enhance e&’s capacity to drive long-term growth and value.”
The acquisition also fosters e&’s ability to deliver innovative telecom and digital services across these high-potential markets. The new holding company comprises leading service brands like Yettel Bulgaria, Yettel Hungary, Yettel Serbia, and O2 Slovakia, as well as infrastructure company CETIN.
Together, it will serve over 10 million customers. PPF Telecom has consistently demonstrated strong financial performance, with combined revenues of approximately €2 billion in 2023 and an EBITDA margin of 44 per cent. e& PPF Telecom’s financials will be consolidated under the e& international vertical from November 2024.
The transaction was financed through debt and is not associated with any related parties.
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