Telefónica is close to selling its Czech operation to the PPF Group NV in a deal worth around €2.5 billion.
Quoting two sources close to the matter, FT reports that the deal could be finalised as early as today (Monday, November 4), with an announcement being made early this week.
It adds that PPF Group NV, which is owned by the Czech billionaire Petr Kellner, could then seek to acquire the remaining 31% of Telefónica Czech Republic, currently listed on the Czech stock exchange, and transform the telco into a wholly privately owned company.
This would add some €1 billion to the value of Telefónica Czech Republic.
Telefónica, which is in the process of disposing some of its non-core assets, acquired a majority (69%) stake in the Czech telco for $4.7 billion (€3.48 billion) in two transactions in 2005.
PPF Group NV is a Dutch-registered Czech investment company.
It current focuses on the developing markets of Europe and Asia, both on projects in wholly controls in banking, the consumer segment and real estate and those it develops with partners in insurance, mining and engineering.
