Europe's news in English

COPY LINK

SLOVAKIA

Telefonica set to shed Czech holdings

Heavily indebted Spanish telecoms firm Telefonica said Tuesday it is holding talks on the sale of the majority stake of its Czech unit with Czech investment group PPS.

Published: 15 October 2013 15:13 CEST

Telefonica set to shed Czech holdings

Telefonica Czech Republic has a client base of 9.3 million in the Czech Republic and Slovakia. Photo: Javier Paredes

"Telefonica is exploring strategic options in relation to its stake in Telefonica Czech Republic, including conversations with investor group PPS, with nothing certain regarding whether an agreement will be reached, or final terms and conditions," it said in a statement.

Telefonica currently holds 69.41 percent of the Czech company, which has a client base of 9.3 million in the Czech Republic and Slovakia.

Its stake in Telefonica Czech Republic, which was listed in 2005, is worth around €2.9 billion ($3.9 billion), according to the share price value on Tuesday.

Telefonica aims to reduce its debt to under €47 billion by the end of the year. It stood at €49.8 billion as of the end of June.

The former state monopoly has sold a number of assets to reduce its debt load, including its Irish division O2 which it sold to Hutchison Whampoa in June for 850 million euros.

At the same time Telefonica is trying to take part in the consolidation of the European telecoms sector which is currently underway.

Earlier this year Telefonica reached deals to acquire control of Dutch telecom firm Ken's German business E-Plus and to increase its stake in Telecom Italia.

Member comments

Log in here to leave a comment.

Become a Member to leave a comment.

Covid-19: Border between Germany and Czech Republic to remain open

Cars driving from the Czech Republic into Bavaria in June. Photo: DPA

Bavarian State Premier Markus Söder, from Chancellor Angela Merkel's Bavarian sister party CSU, and Czech Prime Minister Andrej Babiš want to keep the border open even if the number of coronavirus infections in both countries continus to rise.

“Closing the borders would not be of great benefit in fighting the pandemic, but rather would carry significant negative consequences”, said Söder on Wednesday in Munich after a video conference with Babiš.

READ ALSO: Should Germany impose border controls as Covid-19 rates rise across Europe?

He said that protective measures as face masks and minimum distances now applied on both sides of the border, and that mutually sealing off access would mainly impede the flow of trade and service workers.

Medical care would also be affected, said Söder, pointing out that many Czech commuters work in the care sector in Bavaria.

In order to help Germany's neighbouring country, which is particularly hard hit by the second wave of the pandemic, Söder also offered to make 100 intensive care hospital beds available Czech coronavirus patients.

Better economic support

Söder also pushed for aid from the German government to start in November.

“Culture, gastronomy and self-employed people urgently need support. In addition, the Federal Infection Protection Act had to be extended quickly in order to create clarity and legal certainty,” he added.

Babiš also emphasised the importance of the local coronavirus aid: “If the German economy goes bust, our economy will go bust too,” he said.

The two politicians therefore also talked about cross-border infrastructure projects such as a 5G mobile phone corridor between Prague and Munich and the expansion of railway lines.

Bavaria is currently the German state most affected by the coronavirus pandemic, having reported 2,845 cases within the last 24 hours as of Wednesday afternoon.

The Czech Republic, which borders both Bavaria and the eastern state of Saxony, is one of the hardest hit countries in Europe, having reported 12,089 coronavirus cases within the past 24 hours.

Amid the first lockdown in spring, the German-Czech border was sealed off in mid-March. However, the Czech Republic was one of the first countries in June to reopen its borders to neighbouring countries, including Austria and Hungary.

READ ALSO: Czech Republic reopens border with Germany

Url copied to clipboard!