In e& PPF Telecom Groups' 2024 results call, CEO Balesh Sharma discussed the previsouly announced divestment of the operators' Czech businesses O2 Czech Republic and CETIN. Both entities were reported as discontinued operations, and are now managed by PPF's TMT entity. The remaining opcos in Bulgaria, Hungary, Slovakia and Serbia have now been consolidated by e& PPF Telecom Group.
A previously announced change in ownership structures for GIC’s CETIN assets was also discussed. The changes saw GIC continue to own a 30% stake in various CETIN assets, excluding CETIN in the Czech Republic.
In Q4 2021, PPF agreed the sale of a 30% stake in CETIN to Singapore's GIC.
e& PPF Telecom Group shared that MNOs Yettel and O2 have increased 5G network coverage across Bulgaria, Hungary and Slovakia supported by them focusing on strong network investments and infrastructure roll-out. CETIN has been preparing its network in Serbia for impending 5G rollout ahead of an anticipated 5G spectrum license auction later this year.
In Slovakia, e& PPF Telecom Group continued the implementation of network sharing arrangements with Deutsche Telekom across the country.
e& PPF Telecom Group transaction background
PPF sold 50% plus one share of its telco assets to the UAE- based telco and technology group e& last year. For the first nine months of 2024, the PPF Group and its mobile operator and telecom infrastructure subsidiaries operated across five countries fully owned by PPF. In late October, the transaction closed and a new entity under majority owner e& was created, adopting both names to form 'e& PPF Telecom Group'. The Czech assets, including the MNO O2 and CETIN Czech Republic, were not a part of this transaction.
The group was deleveraged in October 2024 and a new capital structure was put in place, and its financial policy was updated. This has resulted in Fitch and S&P raising their credit ratings by one notch each. At present, e& PPF Telecom Group now have two investment grade ratings and a stable outlook. Shortly afterwards, the group secured 1.5 bn Euros in new credit facilities, further improving its liquidity profile.
A lot has happened in CEE in the past 12 months and TowerXchange expects 2025 to bring additional developments in the passive infrastructure space. Join us at TowerXchange Meetup Europe where we will discuss these along with some CEE-focused content.
