E& PPF Telecom Acquires Serbian d.o.o. for $855.74 Billion

e& PPF Telecom Group BV, a subsidiary of Emirates Telecommunications Group Company (e&) with ownership of 50% + 1 share, on Wednesday said that it has signed an agreement with United Group B.V. to acquire 100% of SBB d.o.o. Serbia (SBB) for a consideration of $855.74 million on a cash free, debt free basis.

SBB is a leading cable television and broadband internet service provider in Serbia with over 700,000 active customers, strong market offerings and skilful management team. Revenue generated in FY 2023 amounted to $253.19 million and EBITDAaL margin of 50%.

This represents an incremental of 12% and 15% to e& PPF Telecom revenue and EBITDAaL respectively (based on FY 2023 financials), e& PPF Telecom, e& Group Chief Financial Officer Karim Bennis said in a regulatory filing with Abu Dhabi Securities Exchange (ADX) this morning.

This transaction will enable e& PPF Telecom to combine SBB with its Serbian mobile subsidiary Yettel, thereby creating a leading converged operator offering enhanced mobile, fixed BB and Pay-TV services in a market with significant growth opportunities, he said.

This acquisition aligns with e&’s strategic ambition to scale up e& international in Central Eastern Europe, diversify revenue sources with more exposure to stable currencies, and accelerate growth in e& PPF Telecom.

This strategic move is also set to significantly enhance e& PPF Telecom operations by strengthening its market positioning in Serbia and overall competitiveness by allowing more comprehensive offerings to meet the evolving needs of its customers.

In addition, it is anticipated to realise significant synergies and enhanced capabilities that will drive value to stakeholders.

The entire transaction will be financed through debt to be raised by e& PPF Telecom. Upon completion, the financials of SBB will be consolidated into e& PPF Telecom’s financials. The impact on e&’s overall financials will not be material.

“Closing of the transaction remains subject to regulatory approval and customary closing conditions. Should there be any developments on this subject, we will keep the market updated in due course,” Bennis added.

About e& PPF Telecom Group

The company is a major telecom provider in Central and South-eastern Europe, driving digital transformation and improving connectivity through innovation and strategic investments. e& PPF Telecom Group focuses on high-quality networks and superior customer experience and was formed in 2024 in a partnership with global technology brand e& (formerly known as Etisalat).

The group operates Yettel (Bulgaria, Hungary, and Serbia), O2 (Slovakia), and CETIN (Bulgaria, Hungary, Slovakia, and Serbia). Yettel and O2 serves consumers, corporations, and public sectors with mobile, broadband, TV, and data services. CETIN provides wholesale telecom infrastructure.