The Czech "PPF" Group announced today, Tuesday, that the Emirates Telecommunications Group "E&" will pay €2.2 billion upfront to acquire a controlling stake in its telecommunications assets in Bulgaria, Hungary, Serbia, and Slovakia.
"PPF" stated in a release that the two groups agreed that "E&" would make additional payments of up to €350 million within three years after completing the deal if "PPF" telecommunications surpasses specific financial targets.
The CEO of "PPF," Jiri Schmitz, said, "The purchase price reaching €2.5 billion, including contractual profit payments, is one of the largest deals ever for PPF."
"PPF" noted that the agreement does not include its telecommunications assets in the Czech Republic. The group has investments in financial services, telecommunications, media, mechanical engineering, and biotechnology, with profits last year amounting to €239 million.
The agreement is expected to be completed in the first quarter of 2024 or earlier, pending regulatory approvals. The two groups indicated that the current CEO of "PPF" telecommunications, Balázs Charmand, will remain in his position.
This agreement comes as "PPF," controlled by the widow of its billionaire founder Peter Kellner who passed away last year, seeks to divest from what was once China's leading consumer lending company and focus on acquisitions in Europe.
