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Telefónica to sell O2 Czech Republic for €2.5 billion

Telefonica_0Telefónica has agreed the sale of the majority of its stake in its Czech subsidiary to investment group PPF Group for €2.467 billion.

Telefónica will sell 65.9% of Telefónica Czech Republic, retaining a minority stake of 4.9%.

The sale, which also includes Telefónica Czech Republic’s operations in Slovakia, will see the company change its name. However, the Spanish telco will remain the Czech company’s industrial and commercial partner for the next four years, allowing it to trade under the O2 brand for that period.

Telefónica Czech Republic has 9.3 million mobile, fixed-line and IPTV customers in the Czech Republic and Slovakia.

Telefónica will receive €2.063 billion in cash on completion of the sale and a deferred payment of €404 million over a period of four years. Before transferring its shares, the telco will receive an additional period of €260 million in November for the dividend declared.

Telefónica’s sale of its Czech unit follows the earlier sale of its German and Irish units.