RPT-Lehman and private investors buy Czech telcos

(Repeats story published late on Thursday)

FRANKFURT/PRAGUE, Nov 23 (Reuters) - Investment bank Lehman Brothers <LEH.N>, private equity firm Mid Europa and Abu Dhabi holding firm Al Bateen have acquired Czech telecoms company Radiokomunikace (CRa) and a 39.2 percent stake in T-Mobile Czech Republic, the buyers said on Thursday.

The full transaction price was not disclosed but a source close to the deal said it was "around 1.2 billion euros".

"This really points to the increasing maturity of the private equity markets in the Czech Republic and beyond," Craig Butcher, partner in Mid Europa, told Reuters. "This is really a milestone transaction."

Butcher would not comment on the price and said the parties in the deal agreed not to disclose it.

According to a statement from the buyers, the deal would be partly funded with senior and mezzanine debt in the amount of 750 million euros ($973 million), the largest debt package to date for a Central European leveraged acquisition, in addition to a substantial equity contribution.

The three investors said CRa was the only national provider of TV and radio broadcast transmission services and a leading alternative provider of telecoms services in the Czech Republic.

"The deal incorporates the acquisition of two very attractive assets in the Czech Republic .. and is a good example of Lehman Brothers' unique sourcing model of proprietary investment opportunities capitalising on the firm's extended network," Vittorio Pignatti, Vice Chairman, Lehman Brothers & Head of Private Equity Europe said in the statement.

T-Mobile Czech Republic, which will remain majority owned by Deutsche Telekom <DTEGn.DE> unit T-Mobile, is market leader in the country with approximately 4.8 million subscribers.

Deutsche Telekom's stake was not affected by the deal.

Mid Europa is the successor fund to EMP Europe Ltd., which was formed in 1999 by EMP Global. The transaction marks a return to the Czech telecoms sector for Mid Europa, which sold its stake in cable television operator Karneval Media to Liberty Global Inc. for $322.5 million in August. ((Reporting by Marie-Louise Moller and Alan Crosby, editing by Sue Thomas; marie-louise.moller@reuters.com; Reuters Messaging: marie-louise.moller.reuters.com@reuters.net; +49 69 7565 1214)) ($1=.7708 Euro)

Keywords: TELECOMS LEHMAN