PPF Group and GIC have agreed that GIC will acquire a 30% stake in CETIN Group. PPF will retain majority 70% ownership of its leading telecommunications infrastructure provider operating across Central and Eastern Europe.
The transaction underscores the confidence among major international investors in the strategy PPF pioneered in 2015 and has since pursued: building and operating complex fixed and mobile telecommunications networks and providing infrastructure as a service to retail operators. PPF and GIC have agreed that the new minority shareholder in CETIN will have appropriate representation on the company’s board of directors. The completion of the transaction is subject to customary regulatory approvals. The parties have agreed not to disclose the transactions’ financial details.
“When we entered the telecommunications sector almost eight years ago, we said that PPF wanted to offer state-of-the-art services to the European market. We are proud to partner with GIC, a major and respected international investor renowned for its unparalleled ability to identify value in stable assets capable of generating solid long-term returns,” says PPF Group shareholder and CEO Ladislav Bartoníček.
Ang Eng Seng, GIC’s Chief Investment Officer of Infrastructure, said: “As a long-term investor, we are confident that the digital infrastructure sector will continue to grow robustly and CETIN, as the leading telecom platform in Central Eastern Europe, is well positioned to capitalize on that growth. We are committed to building a long-term partnership with PPF and CETIN’s management to bring CETIN to the next stage of its development.”
The investment horizon and flexibility of GIC’s investment strategy are in harmony with both PPF and CETIN’s long-term approach to creating shareholder value. “Our partnership with GIC opens new possibilities for CETIN Group to draw upon the expertise of a leading global infrastructure fund and new prospects in our pursuit of business and growth opportunities in the telecommunications infrastructure market,” says CETIN Group CEO Juraj Šedivý.