ALBAWABA – United Arab Emirates (UAE) capital 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 EUR2.15 billion, Bloomberg reported Tuesday.
This is part of the UAE and Abu Dhabi Emirate’s plan to boost global presence, the news agency underscored.
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.
Hungary is exempt from the deal, as Corvinus Nemzetkozi Befektetesi Zrt owns a 25 percent 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.
The company’s focus is on opportunities in Europe, Asia and Africa, he added.
PPF Telecom, part of the Czech billionaire Kellner family’s business empire, which spans Yettel Bulgaria, Yettel Hungary, Yettel Serbia, O2 Slovakia, and CETIN and O2 Networks infrastructure businesses in those countries.
The Kellner family has a net worth of $12.1 billion according to the Bloomberg Billionaire Index. And they are 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.
