e& acquires controlling stake in PPF Telecom
August 2, 2023
e&, previously known as Etisalat, has acquired a controlling stake in PPF Telecom Group’s assets in a transaction valued at €2.15 billion – with additional earn-out payments of up to €350 million within three years after closing of the deal if PPF Telecom hits certain financial targets. There is a clawback of €75 million if such financial targets are not met.
The Abu Dhabi-listed e& has purchased a 50 per cent plus 1 share stake in the European company. The deal comprises of the Yettel Bulgaria, Yettel Hungary, Yettel Serbia, and O2 Slovakia operations, with over 10 million subscribers combined, as well as the CETIN and O2 Networks infrastructure businesses within these countries.
Current PPF Telecom CEO Balesh Sharma will retain his position.
“We are delighted to announce e&’s strategic expansion into the European market. With this move, we join forces with PPF to build and expand our international footprint in the attractive Central and Eastern Europe region and beyond. It is the next step of our transformation into a global technology group, offering e& multiple avenues to roll out its leading suite of B2B and B2C digital products in the CEE with significant synergies,” commented Jassem Mohamed Obaid Bu Ataba Alzaabi, Chairman, e&. The PPF Telecom portfolio, spanning four countries, exhibits a well-balanced structure, underpinned by robust macroeconomic fundamentals and stable currencies. The countries of its operations are characterised by regulatory stability, healthy competition, and highly attractive returns, positioning them among the most promising in Europe.”
Hatem Dowidar, group CEO at e&, added: “As e& continues on its path to be a leading global technology group, our priority remains focused on expanding our customer base and providing them with more digital services, both for consumers and enterprises. This exciting partnership with PPF Group in Bulgaria, Hungary, Serbia, and Slovakia exemplifies our commitment to seeking new opportunities for collaboration and investment opportunities that will further accelerate our expansion. By combining PPF Telecom’s expertise with our own innovative capabilities, we are poised to establish a major telecommunications presence in Central and Eastern Europe. We aim to realise synergies, optimise procurement efficiencies, and enhance customer offerings, establishing our position as a leading global tech group”.
Completion of the transaction remains subject to regulatory approvals and certain closing conditions.