Telefonica has completed the sale of its Czech and Slovak business units to investment group PPF, led by businessman Petr Kellner.
The deal, worth CZK63.6 billion ($3.2 billion) according to Prague Daily Monitor, will see PPF take a 65.9 per cent stake in Telefonica Czech Republic and 100 per cent in Telefonica Slovakia.
PPF spokesman Radek Stavel, quoted by the local news agency, said PPF will offer stock repurchases to Telefonica Czech Republic’s small shareholders.
Telefonica Czech Republic and Telefonica Slovakia will eventually be rebranded. They can continue operating under the brand name of O2, but for no more than four years.
Reuters reports that Telefonica filed a notice to Spain’s stock market regulator saying it had cut debt in each quarter of 2013 and met its year-end target of reducing its net debt below €47 billion.