Business
e& subsidiary to acquire 100% stake in Slovakian broadband operator
O2, the mobile operator in Slovakia, which is part of the e& PPF Telecom Group, has signed a binding agreement with Liberty Global to acquire 100 per cent of UPC Broadband Slovakia (UPC Slovakia) for a total consideration of EUR95 million (US$111.6 million) on a cash-free, debt-free basis.
e& PPF Telecom Group is a subsidiary of the UAE’s Emirates Telecommunications Group Company (e&) with majority ownership of 50 per cent + 1 share.
UPC Slovakia is a fixed broadband operator serving approximately 170,000 customers in the country and generating around EUR47 million (US$55.2 million) in annual revenue and EBITDA margin of approximately 30 per cent. Its network covers approximately 647,000 homes in 80 cities, supported by a well-established and high-quality HFC infrastructure.
These assets will provide O2 Slovakia with a nationwide fixed broadband footprint.
This acquisition is aligned with e&’s strategic ambition to expand the scale of e& international in Central and Eastern Europe and enhance revenue diversification in stable Euro-linked markets. The integration will enhance e& PPF Telecom group’s competitive positioning as it broadens its service capabilities and accelerates its growth trajectory.
By combining UPC Slovakia’s fixed network with its own mobile operations, O2 Slovakia will strengthen its competitive market position by offering a fully converged service portfolio and delivering material benefits by improving customer lifetime value, and generating substantial operational efficiencies underpinned by reducing overlapping operations and optimising capital expenditure.
In a filing with the Abu Dhabi Securities Exchange (ADX), e& said that the EUR95 million consideration is subject to customary closing adjustments and will be financed through a mix of cash and debt at e& PPF Telecom level.
Upon completion, UPC Slovakia’s financials will be consolidated into e& PPF Telecom’s financials and the overall impact on e&’s consolidated financials is expected to be immaterial.
