An agreement is about to be formalized between Telefonica SA and PPF Group NV over the controling stake in the Czech Republic's largest telephone company. This was confirmed by two sources familiar with the transaction who sought anonymity as the negotiations were private in nature.
The final terms over the 69% shareholdings in Telefonica Czech Republic SA is being negotiated with the company owned by billionaire Petr Kellner. The deal would most likely have a provision on staggered payments related to future performances in the business as the sale price would include a premium value on top of the actual share value.
Share prices rose 1.6% at about CZK314 per share in Prague trading. This overshadowed the previous losses amounting to 1.7% share value. The telephone firm's shares were the largest gainers in the benchmark PX index, as the object of the sale had been pegged at a value worth CXK68.2 billion or USD3.7 billion.
Kellner's PPF remained the only acctive bidder and the deal can be finalized by early as next month. Official representatives of both Telefonica and PPF declined to make any comment on the current negotiations and its other financial details.
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