Bloomberg, citing two sources familiar with the matter, says that Telefonica of Spain is close to striking a deal to sell its 69% stake in Czech operation Telefonica O2 CR, to PPF Group, a company controlled by the Czech billionaire Petr Kellner. The unnamed sources suggest that the two sides are currently negotiating the final terms of the deal and with PPF Group the only firm at the table, it is thought that any deal would likely include some kind of staggered payment plan, based on the telco’s future performance.
Earlier this month TeleGeography’s CommsUpdate reported that Telefonica of Spain is teeing up the sale of its 69% holding in Czech incumbent Telefonica O2 CR, to raise funds for ‘further industry consolidation’. At the time it was claimed that Goldman Sachs and Societe Generale are helping the Madrid-based giant find a buyer for its Czech holding, which is thought to have a valuation of around USD3.6 billion. Telefonica’s Czech business has been identified as a non-core asset to be sold and comes hard on the heels of the Spanish firm’s decision to offload its Irish division for EUR850 million (USD1.15 billion), and take control of KPN Telecom’s German business E-Plus in a potential EUR8.5 billion deal.