Clifford Chance advises Telefónica on the €2.47 billion sale of its Czech operations to PPF Group
14.11.2013Company: Clifford Chance Prague LLP, organizační složka
A cross-border team led by Prague-based partner Alex Cook is advising Telefónica, S.A. on the sale of a 65.9% shareholding in Telefónica Czech Republic, a.s., including its 100%-owned subsidiary Telefónica Slovakia, s.r.o. (Telefónica CR / Telefónica SK), to investment firm PPF Group for a total consideration of CZK 63.6 billion (€2,467 million).
The signing of the transaction was announced of 5 November 2013 – closing is subject to approval by the European Commission. Telefónica will remain a commercial partner in the Czech business for four years and will retain a 4.9% equity stake. Once closed the deal will represent the largest M&A transaction on the Czech market in 2013.
While Telefónica CR and Telefónica SK will change their company names once the transaction is approved, they will continue to trade under the O2 Brand for a maximum of four years. The company will also join Telefónica’s Partners Programme.
Telefonica started operating in the Czech Republic in 2005 and founded Telefónica Slovakia in 2007. Telefónica Czech Republic operates the commercial brand O2 in the Czech Republic and Slovakia and has a combined total of 9.3 million mobile, fixed-line and IPTV customers in both territories as of June 2013.
The Clifford Chance team in Prague includes Alex Cook, counsel Tomáš Doležil, senior lawyers Martin Glajch and Janka Brezániová, and associates Dominik Vojta, Aneta Sosnovcová and Veronika Kinclová, with support from the office's Slovak-law desk. Additional specialist advice is being provided by senior CMT lawyer Richard Jones (CC London), senior finance associate Kevin-Paul Deveau (CC London) and employment lawyer Jorge Martín-Fernández (CC Madrid).
Alex Cook comments: "We are delighted act for Telefónica on what is a landmark transaction in the Czech Republic. The sale is subject to approval by the European Commission and we look forward to continue working with Telefónica to bring the transaction to a successful close."
