The central bank in the Czech Republic has approved local investment group PPF’s mandatory buyout offer for shares of Telefonica O2 CR, Reuters reports citing a filing on the bank’s web site. The document however, did not contain any information on the agreed price.
In January this year Telefonica of Spain completed the sale of a majority 65.9% stake in its operations in the Czech Republic (including its business in Slovakia) to PPF, in a deal valued at CZK63.6 billion (USD3.2 billion). The investment firm had been expected to make an offer to buy out minority shareholders of the Czech unit, although Telefonica has stated that it intends to hang onto a 4.9% stake and has agreed to act as a commercial partner to the business for the next four years.
In a related development, shareholders of Telefonica O2 CR have agreed on a plan to change the name of the company to ‘O2 Czech Republic’ from 21 June, following the change in ownership. At a meeting held on Monday, the board of the telco also proposed paying a dividend of CZK18 (USD0.898) per share in 2013. Shareholders will vote on the proposal in June.