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Telecoms among targets in investor PPF's European expansion drive

PPF Group, the investment lorry owned by main Europe's wealthiest family, will look for more acquisitions across its portfolio consisting of possibly some United Group assets in southeast Europe and other telecom companies, its CEO Jiri Smejc told Reuters.

Billionaire investor Smejc took control of managing PPF in 2022 on behalf of the household of his long-time business partner Petr Kellner after his death in a heli-skiing crash.

He has actually since led a shift away from Russia and Asia to Western markets, taking stakes in German TV group ProsiebenSat.1. , parcel box company InPost, streaming. companies Viaplay and other possessions.

Smejc stated in an uncommon interview that PPF, which has possessions of. 44 billion euros ($ 47 billion) and puts the Kellner household at. 106th position in the Forbes international list of billionaires, would. try to find growth in telecoms and other core locations, including. media, financial services, and e-commerce.

We try to focus on the bigger services we have, and. financial investments we are looking for are focused in these areas,. he stated, highlighting the significance of commercial know-how.

Although PPF took a hit from the COVID-19 pandemic, the war. in Ukraine and regulative changes in China, it has reorganized. its holdings and grown earnings quicker than anticipated, Smejc stated.

UNITED GROUP

Smejc offered half of PPF's telecoms businesses in. central-eastern Europe plus one share to UAE's e& & for . 2.15 billion euros in an offer closed last month, developing the e&& . PPF Telecom Group.

He stated it is now looking at concrete acquisitions,. including potentially telecoms and pay-TV operator United Group.

Reuters reported in June that Saudi Arabia's STC Group. was considering an offer for United Group, which is. bulk owned by BC Partners.

A source with knowledge of the matter said United Group's. telecoms possessions in south-eastern Europe have been set up for. prospective sale.

There are certainly several assets there that fit well into. the geography of our service in this part of Europe, Smejc said. of a possible deal.

We have informed ourselves we would look at it but at the. moment the scenario seems a little bit uncertain, which instructions. it will go.

BC Partners did not react to request for comment.

Smejc also said PPF and e& & would be interested in some. European Vodafone possessions, but there were no talks. underway.

PROSIEBEN

Smejc stated he was unhappy with pace of development in improving. Germany's ProSiebenSat.1, where PPF is the second-largest. shareholder with a 15% stake.

Shareholders at ProSiebenSat.1 have actually promoted the sale of. its e-commerce systems. Smejc stated he was not pleased with the sale. speed and further modifications at the business.

To put it simply, we do not have the sensation that the. management is doing a good enough task, Smejc stated of the way. that ProSiebenSat.1 was being run.

When I compare it to our business, the sense of seriousness. that we feel when we try to turn an unfavorable pattern is completely. various than what we see from the management, he said.

Asked about possible pressure for management modifications, Smejc. stated that would generally be up to ProSiebenSat.1's biggest. investor MFE-MediaForEurope.

Either the management needs to speed up the speed at. which, as if they owned the company, carries out the. restructuring, or the shareholders will need to react, he said,. adding the company had potential if handled well.

Smejc also rejected recent Polish media reports saying PPF,. whose CME unit owns television groups in six main and east. European markets, may have an interest in Warners Bros. Discovery's.

Polish system TVN. We have up until now not made any step whatsoever to take a look at this. property, due to the fact that we have other concerns at the minute, he stated.

Smejc stated he was happy with PPF's 28.75% holding in InPost,. whose shares have risen 80% given that PPF's 2023 entry. He stated PPF. was not considering a takeover deal.

He said PPF has likewise not shelved the idea of a tie-up of its. trains producing unit with Spain's Talgo, although. Talgo had earlier this year turned down PPF. A commercial tie-up. could work even if the company has brand-new investors, he stated.

PPF STAKE

Smejc, whose net worth is approximated by Forbes at $1.17. billion, took control of as PPF CEO for three years in June 2022.

His bundle includes options for a stake of up to 10% in PPF. if concealed standards were met.

But, Smejc stated for the very first time, it was most likely that there. would be a monetary settlement rather.

At the minute, we are talking more about the 2nd alternative. ... to settle economically. That is our shared arrangement, Smejc. stated, including that whether he stayed beyond three years was an. open matter.

I'm enjoying many things here, so if the terms make good sense. for both sides, it is definitely something I can picture..

(source: Reuters)