Cyfrowy Polsat to acquire majority in Polkomtel

News Wireless Poland 14 NOV 2013
Cyfrowy Polsat to acquire majority in Polkomtel
Polish pay-TV operator Cyfrowy Polsat has agreed to acquire a majority stake of 83.8 percent in Metelem Holding Company, the company controlling Polkomtel, operator of the Plus mobile network, in exchange for shares of Cyfrowy Polsat. As a result of the transaction, Argumenol, Karswell and Sensor will acquire Cyfrowy Polsat shares. The European Bank for Reconstruction and Development is analyzing the possibility of its participation in the transaction, based on an offer from Cyfrowy Polsat to acquire the EBRD's 16.2 percent stake in Metelem. 

Metelem has been valued for the purposes of the transaction at PLN 6.15 billion, implying an EV/EBITDA ratio (for the 12 months to September) of 5.7x, which the company said was less than trading multiples for peers and recently completed transactions. An independent opinion issued by EY deemed the price fair. Cyfrowy Polsat estimates operational synergies from the takeover at PLN 3.5 billion and financial synergies at approximately PLN 0.5 billion through 2019. 

Proforma for the third quarter of 2013, the new Cyfrowy Polsat Group would have reported revenues of PLN 9.7 billion, EBITDA of PLN 3.9 billion, EBITDA margin of 40.1 percent and operating cash flow of PLN 3.6 billion. Completion of the transaction is expected in mid‐2014 and is contingent on Cyfrowy Polsat shareholders' approval of the issue of shares to Metelem as well as a refinancing of Cyfrowy Polsat's current debt.

Categories:

Mobile

Companies:

Polkomtel,  Cyfrowy Polsat

Countries:

Poland

Tags:

Voice services, Data services, Internet Access, M&A buyouts & divestments

Related Articles

POLAND 12 SEP 2014

EBRD reduces stake in Cyfrowy Polsat

The EBRD has reduced its stake in Cyfrowy Polsat by 33 percent, reports Rpkom.pl. The EBRD sold 15 million shares (2.44 percent of the capital) in the company to investors. It sold the shares at PLN 25.23 each, i. e. a total of PLN 378 million. The institution announced that the fact it sold only a part of the stake reflects its belief in the company's development.

POLAND 14 FEB 2014

Polkomtel, Cyfrowy Polsat integrate departments

Polish mobile operator Polkomtel and Cyfrowy Polsat adopted a decision on integration of selected departments to enhance cooperation and offer a unique portfolio of services to customers, reports Media2.pl. The companies aim to become the biggest media-telecommunications group in the country. The integration shall concern the departments of marketing, sales, customer care, retention and IT.

POLAND 14 FEB 2014

Cyfrowy Polsat, Polkomtel introduce smartHome offer

Polish companies Cyfrowy Polsat and Polkomtel launched a joint programme called smartDOM (smartHome). In the first stage, they will provide integrated products, such as TV, LTE internet and telephone, using the joint portfolio of both operators. The offer will be available from 18 February. During the next few months, new products shall be added, such as banking and energy services. The operators plan to accompany the service launch with a massive marketing campaign. The main benefit for customers choosing

POLAND 23 JAN 2014

Cyfrowy Polsat offers dividend, lock-up as EGM stalls

Polish pay-TV provider Cyfrowy Polsat has announced plans to start paying a dividend. From 2014, the company proposed paying out 33-66 percent of net profit as dividends. The group's net debt would need to be less than 2.5 times EBITDA to allow the payment. The proposal comes as Cyfrowy Polsat is facing resistance from key shareholders over its plans to issue shares to finance the takeover of mobile operator Polkomtel, owned by the same controlling shareholder as the pay-TV provider, Polish businessman Zygm

POLAND 17 JAN 2014

Pension funds oppose Cyfrowy Polsat share issue

Cyfrowy Polsat has adjourned its extraordinary shareholders meeting to vote on a share issue to acquire mobile operator Polkomtel by a week. Shareholders were scheduled to meet on 16 January, but the vote was adjourned until 23 January. According to local portal Rpkom.pl, shareholders voted only on the first resolution on the agenda, conditional increase of the company's share capital, after which the rest of the meeting was postponed based on the proposal of one shareholder. The company plans to issue 291.

POLAND 16 JAN 2014

Cyfrowy Polsat, Polkomtel launch home LTE service

Pay-TV provider Cyfrowy Polsat and mobile operator Polkomtel have launched a home broadband service based on an outdoor LTE antenna. Designed especially for the companies, the antenna can be mounted using an existing satellite or DVB-T installation or on its own. The ODU-100 LTE outdoor modem connects over a single cable to a traditional home router, the IDU-100, which features four LAN ports and Wi-Fi to support multiple broadband users. Marketed as an alternative to fixed broadband, the LTE offer will be

POLAND 15 JAN 2014

Cyfrowy Polsat discloses more info on Polkomtel valuation

Poland's largest media group Cyfrowy Polsat has issued further information for shareholders on the estimated fair value of Metelem, the holding company of mobile operator Polkomtel. This comes ahead of a vote by shareholders on the proposed issue of shares to finance the takeover of the company. The advisory company EY performed an independent valuation of Metelem, and the resulting figure of PLN 6.15 billion is based on 100 percent of Metelem's shares as of 30 September 2013 and includes the group's debt.

POLAND 20 DEC 2013

EBRD buys Cyfrowy Polsat stake via swap for Metelem shares

European Bank for Reconstruction and Development (EBRD) has agreed to purchase shares in Cyfrowy Polsat in exchange for shares in Metelem Holding, to which the mobile operator Polkomtel (network Plus) belongs, reports Rpkom.pl. The transaction dating from November will thus be completed and Cyfrowy Polsat will become a 100 percent shareholder of Metelem. The EBRD will hold a 7.39 percent stake in Cyfrowy Polsat. Previously, the bank owned 16.23 percent of Metelem. The advisors to Cyfrowy Polsat in the trans

POLAND 14 NOV 2013

Cyfrowy Polsat Q3 revenues up 5.1 percent

Polish pay-TV operator Cyfrowy Polsat reported 3.525 million subscribers at the end of September, a year-on-year decrease od 0.9 percent. ARPU for the third quarter increased year-on-year by 3 percent to PLN 40.7. Total revenue for Q3 was up by 5.1 percent to PLN 677.3 million, and net profit for the period went up by 2.6 percent to PLN 176.451 million. Reported EBITDA increased by 4 percent to PLN 268.3 million, while the EBITDA margin decreased by 0.4 percentage points to 39.6 percent.

POLAND 8 NOV 2013

Polkomtel prepares to maintain its LTE leadership

Polish mobile operator Polkomtel said it is ready to fight its competitors, such as P4's Play and T-Mobile Poland, to keep its leadership position in LTE, reports Media2.pl. The number of active users of LTE mobile broadband in Poland is growing. Polkomtel claims to have 0.5 million 4G users. Polkomtel's current LTE coverage is 62 percent of the territory and some 24 million Poles. The operator highlights the fact that it can offer LTE in 1,100 locations, not just the centres of thirteen cities, in what was

POLAND 7 NOV 2013

Polkomtel presents combined packages with Cyfrowy Polsat

Polish mobile operator Polkomtel, which runs the network Plus, has introduced a range of combined packages with TV services from Cyfrowy Polsat, reports Rpkom.pl. The two companies, both belonging to Zygmunt Solorz-Zak's group, have outbid their competitors by offering two small-screen devices with a subscription to mobile services. Plus is offering 33 models of smartphone, router, modem and tablet, along with LTE coverage of 62 percent of population, the cheapest-in-market smartphone (a dual SIM Kazam bran

POLAND 2 SEP 2013

Polkomtel revenues down by 5% in H1

Revenues of Polish mobile operator Polkomtel, which operates under the Plus brand, declined by 5.5 percent year-on-year to PLN 3.38 billion in the first half of 2013, hurt by reductions in termination rates. EBITDA still grew by 1.3 percent to PLN 1.47 billion, and the EBITDA margin exceeded 47 percent. In the second quarter, revenues totaled PLN 1.7 billion, EBITDA was PLN 755 million, and the EBIDTA margin reached 44.3 percent. Polkomtel also reported that its mobile internet user base had passed 3 millio

POLAND 4 JUL 2013

Polkomtel prefers keeping 700 MHz for broadcasting

Polish mobile operator Polkomtel thinks that the 700 MHz band should remain used for broadcasting, not for mobile internet, a spokesperson for the operator told Rpkom.pl. According to Polkomtel, deploying mobile services in the new band would be costly, and the investment would not necessarily result in high-quality services. Polkomtel said it would be more reasonable to assign the band to services providing content. A cooperation between TV broadcasters and telecommunications operators across the widest ra

POLAND 17 JUN 2013

Polkomtel refinances PLN 8 bln worth of loans

Polish mobile operator Polkomtel has refinanced its loans, worth PLN 7.95 billion, reports PAP. The agreement will save the operator over PLN 100 million per year and will have a positive impact on the company's financial results. PZU group, Bank Pekao, PKO Bank Polski and Bank Zachodni WBK acted as Senior Mandated Lead Arrangers. Nordea, DnB Bank, Bank DnB NORD Polska, ING Bank, HSBC Bank Polska, BNP Paribas, The Royal Bank of Scotland, BRE Bank., Bank Millennium, Raiffeisen Bank, Societe Generale andi C

POLAND 13 JUN 2013

Polkomtel, Polsat get data centre in Grodzisk-Mazowiecki

Polish company SPV Grodzisk is building a data centre in the town of Grodzisk-Mazowiecki, around 30km southwest of Warsaw, reports Rpkom.pl. Around 75 percent of the capacity of the data centre will be leased by the mobile operator Polkomtel, with the remainder used by the pay-TV operator Cyfrowy Polsat. SPV Grodzisk is controlled by the holding company Elektrim, which is owned by Zygmunt Solorz-Zak, the controlling shareholder in both operators.

Just In

23 JAN 15:20

Eir Business survey shows consumers concerned about data protection

23 JAN 15:08

Global online safety regulators publish age assurance statement

23 JAN 14:11

Immfly to launch in-flight connectivity kit powered by Eutelsat OneWeb and GoGo antennas

23 JAN 14:05

Rostelecom joint venture Restream Media acquires LifeStream

Commentary

2 JAN 13:21

Open Dutch Fiber's new management team takes up turnaround challenge

15 DEC 2025 13:56

Video market set for slower growth ahead

8 DEC 2025 11:38

Netflix buys Warner Bros to deepen content catalogue

31 OKT 2025 11:11

KPN's mixed performance in Q3 raises questions for strategy day

Background

22 JAN 14:28

Netflix can spend more on content and still improve its margin

19 JAN 00:42

The week in telecom: Apple holds on to smartphone crown, Ericsson slims down and CommScope changes name

16 JAN 09:51

Belgian mobile market under pressure from Digi, broadband impact still to come

15 JAN 08:55

Fairphone still a small player but market share growing in Netherlands

Complete profile

Before downloading the whitepaper, we would like to ask you to complete your profile with company and position. After confirming you will receive the white paper.