Denmark’s TDC said on Wednesday that it is in the process of exercising its call option to buy the half it does not already own of Contactel, a Czech fixed-line and data services provider that it co-owns (50-50) with Ceske radiokomunikace, the Bloomberg reported. The company provided no detailed information.
Since the equity value of Contactel is largely valued at close to zero, the selling price for the 50% stake will likely be just symbolic. We see the Contactel issue to be of minor importance for Ceske radiokomunikace stock.
Jan Hájek