PPF Group NV, the Czech financial group controlled by billionaire Petr Kellner, said its buyout offer for all outstanding shares of Telefonica Czech Republic AS will be based on 305.625 koruna a share, at which the stock was purchased from Spain’s Telefonica SA. (TEF)
The proposed consideration in the mandatory takeover offer will also take into account “further relevant conditions” of the transaction, including the deferred payment of part of the purchase price, PPF said in a statement on its website today. The deferred payment represents 50 koruna per share, payable in eight identical installments due within four years from the closing date of the deal, PPF said.
The deferred part of the purchase price will be adjusted to its present value, Prague-based PPF said. The terms and the conditions of the mandatory offer will be made according to legal requirements and the group will submit draft to the Czech National Bank for an approval by the official deadline, it said.
PPF agreed to buy a controlling stake in Telefonica Czech for about $3.4 billion from Spain’s Telefonica, returning the country’s biggest phone company to local ownership after eight years. Kellner, the richest man in the Czech Republic with a net worth of $11.3 billion according to the Bloomberg Billionaires Index, is betting he can revive the business hurt by intensifying competition and falling phone bills.
PPF said it completed the purchase of 65.9 percent stake in Telefonica Czech yesterday. It bought the operator through its unit PPF Arena 2 BV.
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