e& and PPF Group (PPF) have announced the successful conclusion of their partnership, with e& acquiring a controlling interest (50 percent plus one economic share) in PPF Telecom Group’s service and infrastructure companies across Bulgaria, Hungary, Serbia, and Slovakia. This acquisition represents a pivotal advancement in e&’s global expansion strategy, enhancing its geographical footprint to a total of 38 countries.
This deal is expected to reshape the telecommunications landscape in Central and Eastern Europe (CEE), providing enhanced services to over 10 million customers in these four markets. The partnership aims to offer access to state-of-the-art technologies, broader product lines, and innovative digital services, fostering digital growth and empowering businesses and communities.
Collaboration of strengths
The finalization of this agreement signifies a major advancement for both e& and PPF Telecom. By merging e&’s extensive global reach, sector expertise, and digital capabilities with PPF Telecom’s in-depth regional insights and proven success in organic growth and operational efficiency, this collaboration is positioned to drive future growth and introduce new opportunities for advanced digital services, IoT solutions, and enhanced B2B offerings.
Expanded presence
Hatem Dowidar, group CEO of e&, noted that completing the partnership with PPF Telecom marks a significant milestone in e&’s journey, expanding its telecom presence to 20 countries and its overall operations to 38 countries, spanning various regions. He expressed enthusiasm for welcoming Balesh Sharma, CEO of PPF Telecom, and highlighted the importance of their local market expertise.
Khalifa Al Shamsi, CEO of e& international, expressed excitement about the partnership, emphasizing the opportunities for sharing innovative ideas and best practices, which would strengthen their ability to deliver top-tier services to millions of new customers.
A new approach for PPF Telecom
A standout feature of PPF Telecom is its innovative asset separation model within the telecommunications sector. This strategic approach allows for greater focus and specialization, which can lead to improved performance and value creation in both infrastructure and service domains.
Operational strategy and synergies
This model will enable the new partnership to optimize resource allocation, streamline decision-making, and enhance overall efficiency. PPF’s established lean management practices, combined with e&’s global resources, will serve as a cornerstone for the operational strategy of this partnership, driving significant synergies and cost efficiencies.
Commitment to growth
Jiří Šmejc, CEO of PPF, welcomed e& as a partner in the telecommunications business in CEE, stating that together they have established a platform to drive value creation in rapidly evolving telecom markets. He further acknowledged the efforts of both teams in finalizing the complex transaction.
Maintaining local expertise
Additionally, Jiří Šmejc confirmed that PPF’s telecom assets in the Czech Republic will remain separate from e& PPF Telecom and will continue to be wholly owned by PPF. Under the partnership terms, Balesh Sharma and his management team will retain their positions to ensure operational continuity.
Enhancing customer experience
Moreover, Balesh Sharma remarked that this partnership marks a significant milestone for e& PPF Telecom and the broader telecom sector in the region. He indicated that customers would enjoy improved services and new opportunities for employee development and career advancement.
Driving value through collaboration
This collaboration will leverage synergies in network operations, procurement, and customer service, driving improved efficiency and unlocking new growth and innovation opportunities while enhancing customer experiences throughout the region.
Future outlook
In addition, this partnership is poised to deliver substantial value to the employees of both e& and PPF Telecom, unlocking new career growth opportunities, cross-continental learning, and integration into a global talent network. The newly formed entity, e& PPF Telecom, will further operate as an independent entity, retaining its current management team and workforce.
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