PPF Group will cease to be the sole owner of the Central European network operator Cetin Group. It has agreed with the Singapore state investment fund GIC to sell a 30 percent stake. Participants did not comment on the financial details of the trade. From the results of Cetin and the field in which it operates, however, it can be deduced that it was tens of billions of crowns. The transaction will still have to be approved by the relevant regulatory authorities.
The sale of part of Cetin has been talked about for a long time. In February this year, PPF admitted that admission to the stock exchange is also at stake. A month later, the Bloomberg agency came with the news that such a transaction could value Cetin at about 175 billion crowns. The price of a thirty percent share in the then valuation would be around fifty billion crowns.
According to a source in the daily E15 in the field of telecommunications, the advantage of direct sales over the subscription of shares is more. “It’s a more direct and easier business. At the same time, the company will not be forced to report new numbers quarterly and thus be much more transparent than the competition. It makes sense, “says a source who did not want to be named.
Capitalinked.com founder Radim Dohnal sees the transaction as evidence that PPF sees the sector close to the top or fears regulatory or tax intervention. “For such cases, it is advantageous to have a government fund from a prominent country alongside one of eleven countries with an S&P rating of AAA. I don’t know if the motive for PPF is also the need to bring additional resources to Home Credit, but it is possible, “he said.
PPF did not say what it will use the money from the transaction for. Juraj Šedivý, CEO of Cetin Group, only stated that with the new partnership we can expect new opportunities and opportunities for further growth. The former head of the Czech Telecommunications Office, Jaromír Novák, believes that PPF could use this transaction to acquire a partner for more intensive construction of optical networks in the region and at the same time free its hands for further investments.
- Cetin was established in 2015 by separating the infrastructure from the telecommunications operator O2 Czech Republic.
- It has been operating as a group since 2020, when the infrastructure was separated from the operators operating under the Telenor brand in Bulgaria, Hungary and Serbia.
- Cetin has been a part of PPF’s telecommunications portfolio since 2018. Last year, the members of the group reported a profit of 157 million euros, roughly four billion crowns.
- GIC is a global investment company founded in 1981. It has investments in more than forty countries.