CEZ to Divest โคTelecommunicationsโ Assets, Sparking Investor interest
Prague, Czech Republic -โข Energy group CEZโ is preparing to sell its telecommunications assets, including โคinfrastructure and aโฃ client โฃbase, attractingโ attention โfrom a range of potential investors, according to reportsโ from Seznam Zpravy. the move comes as demand for stable telecommunications infrastructure increases across Europe.
Analysts suggest โคnatural strategic candidates forโ acquisition include Cetin (operated by group PPF),โข which already operates the โฃlargest optical networkโ in the Czech Republic. Other potential โbuyers include โฃdomestic andโข international infrastructure companies seeking networkโ expansion, access to corporate clients, or market consolidation. Financialโ groupsโฃ and โfunds with a history of investingโ in European telecommunications assets, such โคas Macquarie and Cube Infrastructure โManagers, are also considered likely contenders.
“The โnatural strategic candidates โwould be a society โCetin (resp. Group PPF), which โin the Czech Republic operates the largest optical network andโค which could expand with โขthis acquisition,” โขstated Jan Kymliฤka. “Other domestic or international infrastructure companiesโค seeking to complementโ their networks, accessโฃ to corporate clientsโข or consolidate the telecommunications marketโฆfinancial groups and large fundsโฆare investing in investors.”
Beyond Cetin,โฃ other โCzechโ telecommunications leaders like O2 (also part of PPFโค Group), Vodafone, โขand T-Mobile could express interest.Investment โฃfunds like DRFG, or multinational telecommunications companies like Orange seeking entry into โthe Czech market, are also possibilities, according to Martin Vachata,โฃ main analyst of the Talers โขconsulting group. “Investmentโ funds that telecommunications are not โฃalienโฆor some โmultinationalโฃ telecommunications companyโฆwhich would thus โreceive a ticket to the Czech market, couldโข also be submitted,” โขVachata added.
The โขsale priceโ is estimated to be in the lower โขbillions of Czech crowns, with Kymliฤkaโข valuing the CEZ-Telco for Services company in the middle โbillions.
Experts cite a favorable โฃmarket for the sale,noting strongโค investor demand for infrastructure assets. “Infrastructure telecommunications assets โค(optical networks,passive infrastructure,dataโข centers) โare currently inquiry byโฃ investors,as โคinvestors are looking forโข stable and predictable โขcash Flow with limitedโฃ operating risk,” โKymliฤka explained.
Vachata echoed this sentiment, โstating, “Especially in companies that have a โquality and modern optical networkโฆthe relatively high valuation โand the creation of a solid competitive environment associated with the plannedโฃ sale of the telecommunications part of CEZโ can be expected.”
