Telefónica ups Cesky Telecom holding to 69.4%

21 Sep 2005

Telefónica of Spain has increased its shareholding in Cesky Telecom to 69.4% after a mandatory buy-out offer, which ended on Monday. The Spanish telco acquired a 51.1% stake in the Czech fixed line operator from the government in June for CZK82.62 billion (USD3.33 billion) and under the purchase agreement was required to make a buy-out offer to the remaining shareholders. The result of the mandatory buy-out is a relief to analysts who were concerned that it would reduce the number of Cesky Telecom shares in free float to below 30%, causing a negative impact on the stock’s liquidity.

Czech Republic, O2 Czech Republic (incl. CETIN), Telefonica