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Cyfrowy Polsat buys majority stake in mobile telco Polkomtel

Polkomtel - PlusPolish pay TV operator Cyfrowy Polsat has agreed to buy a majority stake in mobile telco Polkomtel,  in a deal worth roughly PLN5.15 billion (€1.23 billion) that it said will establish it as “the largest media-telecommunications group in Poland.”

Cyfrowy Polsat said it had agreed to buy an 83.8% stake in Metelem Holding Company Limited, the firm that holds full control over Polkomtel – operator of the Plus mobile network – in exchange for Cyfrowy Polsat shares.

Metelem was valued at PLN6.15 billion (€1.55 billion), with Cyfrowy Polsat due to issue 243.93 million shares in order to complete the deal, at a price of PLN21.12 each.

“I am confident that thanks to this transaction both Cyfrowy Polsat and Polkomtel will gain new possibilities for development in the dynamically changing and highly competitive market environment,” said Dominik Libicki, President of the Management Board of Cyfrowy Polsat.

“The strategy of Cyfrowy Polsat Group, based on providing the best entertainment and telecommunication services  using  the  latest  technologies  on  all  consumer  devices,  remains unchanged. Polkomtel fits it perfectly and provides a fantastic opportunity for significant acceleration of its execution.”

Completion of the transaction is expected in mid‐2014, dependent on Cyfrowy Polsat and Metelem shareholder approval, and a successful refinancing of Cyfrowy Polsat’s debt.