Telegraf Biznis reporting confirmed: Arabs are buying Yettel in Serbia

Photo: Yettel

Abu Dhabi-based Emirates Telecommunications Group has agreed to buy a controlling stake in PPF Telecom Group in Bulgaria, Hungary, Serbia and Slovakia for 2.15 billion euros, as part of its plan to strengthen its global presence, as previously reported by Telegraf Biznis.

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Emirates Telecom has signed a binding agreement for acquiring a controlling stake in PPF's service and infrastructure companies in these countries, a statement said on Tuesday, except in Hungary where Corvinus Nemzetkozi Befektetesi holds a 25 percent stake.

The deal comes as the $60 billion-worth Abu Dhabi giant said it had the "capacity and means" to invest, Chief Executive Officer Hatem Dowidar told Bloomberg TV earlier this year, adding that his focus was on opportunities in Europe, Asia and Africa.

PPF Telekom, part of the business empire of the Czech billionaire Kellner family, consists of Yettel Bulgaria, Yettel Hungary, Yettel Serbia, O2 Slovakia and infrastructure companies CETIN and O2 Networks in those countries.

The Kellner family, whose net worth is estimated by the Bloomberg Billionaires Index at $12.1 billion, is eyeing potential acquisition targets in Europe as part of a strategy to shift investment focus back to Western markets after years of expansion in Asia.

The agreement to take over Yettel includes up to 350 million euros if PPF exceeds certain targets, and otherwise envisages a return of up to 75 million if part of those targets are not met by the time the deal is finalized.

Telegraf Biznis was the first to report that PPF Group and Emirates Telecommunications Group Company have started negotiations regarding the acquisition.

"PPF Group and Emirates Telecommunications Group are in the early stages of discussions regarding a potential partnership to explore the possibility of strategic cooperation in Central and South-Eastern Europe (excluding the Czech Republic), which would be beneficial for both groups," said PPF Group execitive Leos Rousek.

Telenor Serbia changed its name to Yettel early last year. The brand change took place in three countries where the PPF Group used the Telenor brand - Serbia, Hungary and Bulgaria.

As was said at the time, Yettel is a modern brand, designed on the basis of market and trends research. It was created with the aim of contributing to the quality of life of users, with an understanding of the ever-increasing role that technology plays in people's daily lives. In Serbia, PPF has a 100 percent stake in Yettel.

In an earlier conversation with Telegraf Biznis, Mike Michel said that "Serbia is ready for another strong cable player," which was later made official.

After that, Marek Slacik, executive director of TMT CEE in the PPF Telecom Group, spoke about the name change of Telenor, users, investments, and the PPF Group itself in an exclusive interview for Telegraf Biznis.

What is Etisalat?

Founded in 1976 as a group of telephone operators, the company currently has over 162 million subscribers in 16 countries in the Middle East, Asia and Africa and is the second largest in its region, after Saudi Telecom.

The majority shareholder in the company is the UAE government with 60 percent, and the remaining 40 percent is publicly traded.

The operator's revenue for 2022 reached $14.3 billion with a profit of $2.7 billion, while the market capitalization is close to $53 billion.

More than half of the revenue comes from the UAE, but that market is slowing down. The main growth comes from its international operations, mainly in Egypt and Morocco, and ultimately Europe will be a beneficial diversification for Etisalat.

The group has invested billions so far in all these international operations.

(Telegraf Biznis)