Telefonica loosens grip on Czech holdings

Telefonica loosens grip on Czech holdings
The iconic Telefonica building in Madrid. Photo: Javier Paredes
Czech financial group PPF is due to take over a majority stake in Telefonica Czech Republic telecom from its indebted Spanish parent, the Czech News Agency (CTK) reported on Monday.

Citing well-informed sources, CTK said the deal should be signed on Monday or by November 11th.

The Financial Times reported on Monday that the value of the 69-percent stake was €2.5 billion ($3.4 billion).

Owned by the wealthiest Czech, Petr Kellner, PPF has led exclusive talks with Spain's Telefonica on the takeover in recent weeks, the Financial Times said.

News about Telefonica's plan to sell its Czech unit first surfaced two months ago.

Telefonica Czech Republic runs almost seven million mobile and fixed phone lines in the EU member of 10.5 million people.

It earned net profits worth €262 million ($354 million) on almost €2 billion in sales last year, its annual report said.

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