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PPF sells 3 pct in O2 to financier Tykac, aims to raise free-float
February 7, 2017 / 4:51 PM / 9 months ago

PPF sells 3 pct in O2 to financier Tykac, aims to raise free-float

PRAGUE, Feb 7 (Reuters) - Czech PPF Group of Petr Kellner has sold 3 percent in fixed and mobile operator O2 Czech Republic to investor Pavel Tykac, the two sides said on Tuesday.

O2 said the sale was aimed to support liquidity and free float, which rises to 17.4 percent excluding treasury shares.

“In this regard, the price agreed for this transaction does not reflect the fair value of O2 shares as perceived by PPF Group,” PPF said.

O2 has 8.74 percent weight in the MSCI Czech Republic index .

Jan Chudomel, a spokesman for Tykac, said the stock was sold at market price. The stock closed up 0.23 percent on Tuesday at 266.7 crowns, which would value the transaction at 2.48 billion crowns ($98.20 million).

He said the offer was a good opportunity to enter the stock given its 8 percent dividend yield and the company’s stable performance.

The company said last month it would propose a dividend of 17 crowns per share from 2016 net profit, up from 16 crowns a share the previous year, on top of 4 crown share premium.

PPF will hold 81.1 percent equity stake after the transaction. It said it did not plan to sell further shares for the time being. ($1 = 25.2540 Czech crowns) (Reporting by Jan Lopatka)

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