April 28, 2015 / 6:51 PM / in 5 years

UPDATE 1-O2 Czech Republic shareholders approve splitting company

(Adds minority shareholder comment, details on new company)

PRAGUE, April 28 (Reuters) - Shareholders of O2 Czech Republic agreed on Tuesday to spin off the infrastructure part of the fixed and mobile telecommunications firm into a new company.

The new firm, CETIN, which will not be publicly traded, contributed about 50 percent of the group’s operating profit last year. O2 shareholders will be each given one share in the new firm per one O2 share.

What remains of Czech O2 will continue as a publicly-listed operator, providing voice and data services as well as television.

Shareholders who voted against the spin-off will have the right to sell their shares in the new firm in a buyout offer for a price to be determined by an audit, but will likely be close to the 150 crowns per share determined by a previous evaluation.

During the meeting, which lasted more than 10 hours, dozens of minority shareholders criticised the split which they saw as devaluing their investment.

The majority shareholder, Czech billionaire Petr Kellner’s PPF investment group, holds an 83 percent stake.

“Why don’t they offer a fair buy-back, to give the people a decent exit? Why do they put them through this? Many families put their savings into this, it used to be a conservative investment,” Tomas Hajek, who represents 550 shareholders, told Reuters.

CETIN was valued at 150 crowns per share, or 46.9 billion crowns ($1.84 billion) for the purposes of the split. The final price will be set by a new valuation after the split, expected on June 1.

The O2 stock closed down 3.5 percent at 195.30 crowns on Tuesday, valuing the whole company at 61.6 billion crowns. ($1 = 133.3800 crowns) (Reporting by Robert Muller; editing by Susan Thomas)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below