Mid Europa sells TMCZ for €828m

The firm acquired its stake in TMCZ alongside Lehman Brothers and Al-Bateen Investment Company in June 2006. The deal was believed to be valued at €1.2bn, with a €750m senior and mezzanine debt package supplied by ING Bank. Mid Europa invested via its €655m Emerging Europe Convergence Fund II, according to unquote" data.

In 2008, Mid Europa bought out the stake in TMCZ held by Lehman Brothers via its €1.5bn Mid Europa Fund III.

The firm then completed a CZK 10bn (c€400m) refinancing of TMCZ in July 2012.

According to Mid Europa, TMCZ now has more than 5.8 million subscribers. At the time of the firm's second investment in 2008, TMCZ had 5.3 million subscribers in the Czech Republic, representing a 40% share of the market.

Company
Operating since 1996, TMCZ is the Prague-based branch of mobile operator T-Mobile. The unit provides mobile telecommunications services in the Czech Republic as well as combined fixed, mobile and IT solutions to individuals and businesses.

The company generated revenues of €1bn in 2012, employing 2,850 staff.

People
Nikolaus Bethlen is a partner at Mid Europa. Associate director Robert Chmelar, senior associate Ratko Jovic and associate Evtim Chesnovski worked on the deal for the firm. Claudia Nemat is a board member for Europe and technology at Deutsche Telekom.

Advisers
Acquirer – Credit Suisse Securities (Corporate finance); Clifford Chance (Legal).

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• Topics
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• Mid Europa Partners
• Trade sale