MFDnes informed that Deutsche Bank/TDC, privatization tender winners, will buy state`s 51% stake in CTel via C-Tel (a vehicle created for this purpose, incorporated in the Czech Republic), several banks should provide a syndicated loan to C-Tel to finance the purchase. Then two scenarios may follow: (i) a minority buy-out and a merger of CTel and C-Tel, or (ii) amortization of C-Tel`s debt from dividends paid by CTel (either regular, or extraordinary from CTel`s possible divestiture of 51% stake in Eurotel). While the latter is unfavorable due to tax reasons, the former depends on a willingness of minority shareholders to sell their stakes. The report does not bring anything new though, both scenarios has been speculated about before.
Jiri Soustruznik