Telefónica has agreed to sell a 65.9% stake in its Czech subsidiary to PPF Group NV for €2,467 million in cash.
Of this, €2,063 million will be payable upon completion of the deal and €404 million after four years.
Before transferring the shares, Telefónica will also receive an additional payment of €260 million this month for the dividend declared.
Significantly, it will maintain a 4.9% stake in Telefónica Czech Republic and remain its industrial and commercial partner for the next four years.
This will be despite the expectation that PPF will launch a mandatory offer for the remaining capital.
The sale, which includes Telefónica’s interests in neighbouring Slovakia, will see Telefónica Czech Republic and Telefónica Slovakia change their names but continue to trade under the O2 brand for a maximum of four years.
The company will also join Telefónica’s Partners Programme, an initiative offering other operators the opportunity to benefit from Telefónica’s scale and cooperate on key business areas.
The deal is subject to relevant regulatory approvals.
