The due diligence of PPC on Nova has been completed, according to information from BN, and it appears that an intense bargaining process has begun between the two sides.
Sources indicate that PPC’s discussions with Nova’s shareholders, or more precisely with United, concern in the first phase the fiber optic infrastructure, without ruling out in a subsequent phase an equity stake in Nova or even a full acquisition.
The crux of the matter regarding the acquisition of the fiber optic assets lies in the price, where the two sides do not seem to have reached a point of convergence and agreement.
It is worth noting that the fiber optic infrastructure is not included within Nova itself but within a subsidiary of the United group, specifically United Fiber Single Member, which essentially supports the provision of fiber optic services by Nova, with which it has entered into a long term commercial cooperation.
Coverage
United Fiber is the wholesale fiber optic company whose fiber to the home FTTH network coverage reaches 850.000 homes and businesses in Greece, with a target of 950.000 by the coming spring.
So far in Attica, connection availability exceeds 520.000 homes, while 67% of these (350.000) already have internal installation. In Thessaloniki, coverage exceeds 110.000 residences and businesses, with internal installation at 78% (87.000).
In the Peloponnese, more than 95.000 homes and businesses have been connected and 47% (45.000) have internal installation. In Thessaly, coverage reaches 55.000 consumers, with 66% (36.500) already having internal installation. In Crete, with emphasis on Heraklion, more than 70.000 consumers have access to the network, while 41% (28.500) have internal installation.
Squeezing OTE
Essentially, it is a very strong network with good locations and licensing, which if acquired by PPC would effectively squeeze OTE, as PPC would immediately gain access to approximately 2 million households.
It can move faster
This is because OTE has access to approximately 2,1 million households and businesses with the fiber optic network it currently operates.
PPC, however, can subsequently move faster and reach 1,7 million households in the coming months and, as is well known, at a lower cost.
Thus, in a short period of time, PPC could find itself significantly ahead of OTE on the wholesale side, while simultaneously selling retail products at much lower prices and with nationwide coverage.
In essence, PPC can capture significant market share from OTE in both wholesale and retail, while also possessing a very strong distribution channel, currently the strongest in Greece, Kotsovolos.
Nikos Karoutzos
www.bankingnews.gr
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