Abu Dhabi’s E& Weighs Acquisition of Telecom Company United Group - Bloomberg
Emirates Telecommunications Group Co. is considering a potential acquisition of eastern European carrier United Group BV as it seeks further expansion outside its home market, according to people familiar with the matter.
E&, as the Abu Dhabi-based carrier is known, has been evaluating a possible purchase of United Group, the people said, asking not to be identified because the information is private. The company’s private equity owner BC Partners may seek a valuation of around €8 billion ($8.6 billion), the people said.
BC Partners is working with advisers to explore a sale of United Group, and other suitors may emerge, the people said. The buyout firm plans to kick off a formal sale process next month, some of the people said. Deliberations are at an early stage, and it could end up selling the business piecemeal to multiple buyers, they said.
United Group has operations in countries including Serbia, Slovenia, Croatia, Bosnia & Herzegovina and Montenegro, according to its website. It has also expanded into European Union members such as Bulgaria and Greece.
Deliberations are ongoing and there’s no certainty they will lead to an agreement. A representative for BC Partners declined to comment. A spokesperson for e& said that as a listed company, it keeps the market informed on any developments and “at this stage” it is not bidding for United Group.
E& agreed last year to acquire a controlling stake in PPF Telecom Group’s assets in Bulgaria, Hungary, Serbia and Slovakia. It also owns a significant stake in London-listed Vodafone Group Plc. The Emirati company’s chief executive officer, Hatem Dowidar, joined Vodafone’s board in February.
BC Partners acquired United Group in 2019 from private equity firm KKR & Co. Last year, Saudi Telecom Co.’s Tawal infrastructure arm agreed to buy a portfolio of tower assets from United Group for €1.22 billion.
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