Shareholders in Polish media group Cyfrowy Polsat have approved, at an EGM today, a PLN6.15bn (US$2bn) share-swap deal, which will see it merge with mobile operator Polkomtel (Plus).
New shares in Cyfrowy will be taken up by shareholders in Metelem…
Shareholders in Polish media group Cyfrowy Polsat have approved, at an EGM today, a PLN6.15bn (US$2bn) share-swap deal, which will see it merge with mobile operator Polkomtel (Plus).
New shares in Cyfrowy will be taken up by shareholders in Metelem Holding Company, the sole owner of Polkomtel.
Both Cyfrowy and Metelem are controlled by billionaire Zygmunt Solorz-Zak.
The EGM’s draft resolutions stated that the merger will “create a company which will be able to effectively compete and create value for shareholders in executing a common strategy”.
Cyfrowy announced in November that it had agreed to buy a majority stake in Metelem. The European Bank for Reconstruction and Development (EBRD) subsequently agreed to sell its 16.2% stake in Metelem to Cyfrowy and to acquire a 7.39% stake in the media group.
Cyfrowy has said the merger with Polkomtel will create Poland’s largest media and telecoms group with estimated annual revenue of nearly PLN10bn (US$3.21bn). The media group expects the deal to close in Q2 2014, subject to the successful refinancing of its existing debt.
