O2 Czech May Move Telecommunication Infrastructure to New Unit

O2 Czech Republic AS, the country’s biggest telecommunications provider, is considering moving its fixed and mobile infrastructure into a separate company.

O2 Czech, in which billionaire Petr Kellner’s investment house PPF Group NV owns a majority, is proceeding with a feasibility study and decided to prepare “formal steps leading to such separation,” the company said in a regulatory filing today. The new unit would provide wholesale services to other operators, according to the statement.

The decision comes less than a month after O2 Czech shareholders approved PPF’s request for a loan of as much as 24.8 billion koruna ($1.1 billion). Chief Finacial Officer Tomas Kouril said on Nov. 12 the company can’t provide guidance on future dividends before analyzing the impact of the loan to PPF and a potential infrastructure spinoff.

O2 Czech shares rose 1.2 percent today before the announcement to 227 koruna. The stock fell 26 percent from October to December, the worst quarter in more than 13 years, amid speculation the company may cut dividends.

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