Mid Europa Announces the Recapitalisation of its stake in T-Mobile Czech Republic
25.1.2012
Falcon, an entity controlled by funds managed or advised by Mid Europa Partners (“Mid Europa”), which holds a 39.2% stake in T-Mobile Czech Republic (“TMCZ”), announced today the recapitalisation of the Group, raising CZK 9.125 billion (approximately €365 million).
The CZK denominated financing was underwritten by a group of six local and international banks (Citi, CSOB, Erste Group Bank/Ceska sporitelna, ING Bank, Raiffeisen Bank International, and Société Générale) and coordinated by Erste Group Bank and CSOB. The financing allows for an additional increase in the total committments to up to CZK 10 billion (approximately €400 million). The transaction represents one of the largest recapitalisations executed in Europe and the largest recapitalisation in Central and Eastern Europe since the collapse of Lehman Brothers in 2008. The net proceeds of the recapitalisation will be distributed to Falcon’s shareholders.
Craig Butcher, Senior Adviser for Mid Europa who led the acquisition of Falcon and is responsible for the investment, commented: "We are very pleased with the outcome of the transaction. This ground-breaking financing is testimony to Mid Europa’s long-standing banking relationships in the region and its ability to tap local pools of liquidity in spite of challenging credit market conditions".
Robert Chmelar, Associate Director, who negotiated and executed the financing for Mid Europa, added: "We would like to thank the lenders for their constructive approach, which enabled Falcon to achieve attractive transaction terms. Their support of the transaction underlines the clear leadership of TMCZ, and its management, in the Czech telecommunications market."
Falcon acquired the 39.23% stake in TMCZ in 2006 together with 100% of Ceske Radiokomunikace, a.s. (“CRa”), the leading provider of nation-wide broadcasting and telecommunications tower infrastructure in the Czech Republic. In January 2011, Falcon sold CRa for a total consideration of approximately €574 million.
For further information please contact:
Mid Europa Partners:
Craig Butcher / Robert Chmelar
+36 (1) 411 1270
Citigate:
David Westover/Agnès Riousse
+44 (0) 20 7638 9571
Notes to the editors:
ABOUT MID EUROPA PARTNERS
Mid Europa Partners is a leading independent private equity firm focused on Central and Eastern Europe. Operating from London, Budapest and Warsaw, Mid Europa Partners advises and manages funds with asset value of approximately €3.2 billion. The Mid Europa Partners team has been investing in Central and Eastern Europe since 1999.