Telefonica has confirmed talks to sell its stake in Telefonica Czech Republic. The Spanish operator said that it's considering "strategic alternatives" for its Czech activities, including talks with Czech investment group PPF. The company noted no agreement was certain, nor did it disclose any details on the conditions of such a sale.
Earlier press reports said PPF, owned by the country's richest man Petr Kellner, was a likely buyer of Telefonica's 69 percent stake in the incumbent Czech operator. The sale is part of efforts to reduce debt at Telefonica and follows other disposals such as the sale of O2 Ireland to Hutchison Whampoa. The stake in Telefonica Czech Republic is estimated to be worth EUR 3.6 billion.
Telefonica Czech Republic is facing growing competition from rivals such as T-Mobile and Vodafone in the Czech telecoms market, and is currently in the process of diversifying its portfolio and expanding its smaller business in Slovakia. Telefonica, meanwhile, is aiming to cut its debt to under EUR 47 billion by year-end (net debt stood at EUR 49.8 billion in mid-year results).
According to Bloomberg, Goldman Sachs and Societe Generale are helping Telefonica find a buyer for the stake.
