United Group Divests Serbia Broadband to e& PPF Telecom Group
PRAGUE (Reuters) - Balkan telecoms and media company United Group has agreed to sell its broadband provider Serbia Broadband to e& PPF Telecoms Group and other assets to Telekom Srbija in a deal with an enterprise value of 1.5 billion euros, United said on Wednesday.
e& PPF Telecom Group, a joint venture of UAE's e& and Czech-based PPF, said it was buying Serbia Broadband (SBB) for 825 million euros ($854.95 million) cash-free and debt-free as the main part of the transaction.
United Group, which operates across South East Europe, said it was also selling its NetTV Plus business and its sports broadcasting rights for the Western Balkans to Telekom Srbija. It is keeping SBB's media assets including the N1 and Nova S television channels, which will continue to be available on SBB's network.
"Today’s divestments are in line with our strategy to sharpen our focus on the markets where we can provide the full spectrum of mobile and fixed telecommunication services to our customers, which will enable us to realize the greatest potential for growth and value creation," United Group Chief Executive Victoriya Boklag said in a statement.
e& PPF Telecom Group said the deal adds 700,000 cable television and broadband internet customers to its base.
The acquisition is an outcome of e& and PPF's interest in United Group assets announced by PPF chief Jiri Smejc in a Reuters interview in November.
"The acquisition aligns with e&’s strategic ambition to scale up e& international in Central Eastern Europe, diversify revenue sources with greater exposure to stable currencies, and
accelerate growth in e& PPF Telecom," e& PPF Telecom said in a statement"
e& PPF Telecom said the deal would be entirely financed by external debt.
United said the deal was subject to regulatory approvals and was expected to be completed during the first half of 2025.
($1 = 0.9650 euros)
(Reporting by Jan Lopatka;Editing by Elaine Hardcastle)
