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UPDATE 1-Czech PPF plans to split up its O2 telecoms firm-report
August 13, 2014 / 7:28 AM / 3 years ago

UPDATE 1-Czech PPF plans to split up its O2 telecoms firm-report

(adds company reaction, background)

PRAGUE, Aug 13 (Reuters) - Czech financial group PPF plans to split its telecoms company O2 Czech Republic into two parts, business daily Hospodarske Noviny reported on Wednesday.

It would divide the firm into a fixed lines and infrastructure business, and another business focusing on mobile connection and other services, the newspaper said, without stating its sources.

“Nothing has been decided. At the moment it is speculation in the market,” O2 spokesman Martin Zabka said.

A PPF spokesman declined to comment.

The split could free the company from regulatory oversight which applies to its monopoly in the fixed lines business, the newspaper said.

PPF, controlled by the Czech Republic’s richest man Petr Kellner, acquired a 65.9 percent stake in O2 Czech Republic from Spain’s Telefonica in January.

In July, it raised its stake to 73.1 percent in a mandatory buyout offer to minority shareholders.

O2 Czech Republic posted a smaller-than-expected 9.5 percent year-on-year decline in net profit in the second quarter, hit by a further drop in mobile and fixed-line revenue. (Reporting by Robert Muller; Editing by Pravin Char and William Hardy)

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