Arab telecom Emirates Telecommunications Group, known as Etisalat or “is&”, is considering a potential acquisition of Eastern European telecom United Group in search of further expansion into foreign markets, reports Bloomberg. United Group owns in Bulgaria the mobile operator Vivacom, the satellite TV operator Bulsatcom. It is also the owner of “Nova Broadcasting Group”, broadcasting “Nova TV” and a number of other television channels, radio stations, newspaper and online media.
Discussions about acquiring United Group from Arab Telecom are at an early stage, Bloomberg’s sources say.
The deal could be for 8 billion euros
Abu Dhabi-based Etisalat is evaluating the possibility of buying United Group, sources familiar with the matter told Bloomberg on condition of anonymity because the information is confidential. According to their information, the owner of United Group – BC Partners can ask for its assets a price of about 8 billion euros ($8.6 billion).
BC Partners is working with advisers to explore the possibility of selling United Group, with other suitors possibly emerging, Bloomberg’s sources said. The formal sale process is expected to be announced this month, they added. Discussions are at an early stage and could eventually lead to a partial sale of the business to several buyers.
A BC Partners representative declined to comment to Bloomberg. A spokesperson for “e&” said that as a listed company, it keeps the market informed of any developments and “at this stage” does not bid for United Group.
Arab Telecom already owns the Bulgarian market
Last year “e&” acquired the controlling stake of PPF Telecom Group’s assets in Bulgaria, Hungary, Serbia and Slovakia. PPF Group is owned by the family of the late Czech billionaire Peter Kellner. Furthermore “e&” also owns a significant stake in the London-registered Vodafone Group Plc. The Arab company’s chief executive, Hatem Daouidar, joined Vodafone’s board in February.
At the moment, the Arab company already has ownership in another telecom operating in Bulgaria – Yettel through the mentioned transaction with PPF Group. In February of this year, the Commission for the Protection of Competition (CPC) authorized the unconditional and immediate acquisition of sole control over the owner of “Yettel Bulgaria” by Emirates Telecommunications Group, registered in the United Arab Emirates.
In detail, the Arab company acquired 50 percent plus one share of the Dutch-registered company “PPF Telecom Group” B.V. (PPF Telecom Group BV), which is part of the PPF Group.
Who is the seller?
BC Partners acquired United Group in 2019 from private equity firm KKR & Co.
Last year, the Tawal infrastructure division of Saudi Telecom Co. agreed to buy a portfolio of tower assets from United Group for €1.22 billion.
United Group operates in Serbia, Slovenia, Croatia, Bosnia and Herzegovina and Montenegro.
It has also expanded its activities in European Union countries such as Bulgaria and Greece, Bloomberg recalls, referring to the company’s website.
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