CEZ to Divest Telecommunications Assets, Sparking Investor interest
Prague, Czech Republic - Energy group CEZ is preparing to sell its telecommunications assets, including infrastructure and a client base, attracting attention from a range of potential investors, according to reports from Seznam Zpravy. the move comes as demand for stable telecommunications infrastructure increases across Europe.
Analysts suggest natural strategic candidates for acquisition include Cetin (operated by group PPF), which already operates the largest optical network in the Czech Republic. Other potential buyers include domestic and international infrastructure companies seeking network expansion, access to corporate clients, or market consolidation. Financial groups and funds with a history of investing in European telecommunications assets, such as Macquarie and Cube Infrastructure Managers, are also considered likely contenders.
“The natural strategic candidates would be a society Cetin (resp. Group PPF), which in the Czech Republic operates the largest optical network and which could expand with this acquisition,” stated Jan Kymlička. “Other domestic or international infrastructure companies seeking to complement their networks, access to corporate clients or consolidate the telecommunications market…financial groups and large funds…are investing in investors.”
Beyond Cetin, other Czech telecommunications leaders like O2 (also part of PPF Group), Vodafone, and T-Mobile could express interest.Investment funds like DRFG, or multinational telecommunications companies like Orange seeking entry into the Czech market, are also possibilities, according to Martin Vachata, main analyst of the Talers consulting group. “Investment funds that telecommunications are not alien…or some multinational telecommunications company…which would thus receive a ticket to the Czech market, could also be submitted,” Vachata added.
The sale price is estimated to be in the lower billions of Czech crowns, with Kymlička valuing the CEZ-Telco for Services company in the middle billions.
Experts cite a favorable market for the sale,noting strong investor demand for infrastructure assets. “Infrastructure telecommunications assets (optical networks,passive infrastructure,data centers) are currently inquiry by investors,as investors are looking for stable and predictable cash Flow with limited operating risk,” Kymlička explained.
Vachata echoed this sentiment, stating, “Especially in companies that have a quality and modern optical network…the relatively high valuation and the creation of a solid competitive environment associated with the planned sale of the telecommunications part of CEZ can be expected.”
