Poland’s largest media group Cyfrowy Polsat has completed its nearly PLN6.15bn (US$2.02bn) merger with mobile operator Polkomtel (Plus).
Cyfrowy acquired 100% of the shares of Polkomtel owner Metelem, meaning the mobile operator is now part of the…
Poland’s largest media group Cyfrowy Polsat has completed its nearly PLN6.15bn (US$2.02bn) merger with mobile operator Polkomtel (Plus).
Cyfrowy acquired 100% of the shares of Polkomtel owner Metelem, meaning the mobile operator is now part of the group, the media company said in a statement.
All conditions precedent to the deal have been fulfilled it said. These included repaying PLN1.925bn (US$633.8m) worth of existing Cyfrowy debt and finalising a framework agreement with the European Reconstruction and Development Bank (EBRD).
Zygmunt Solorz-Zak, the Polish businessman who controls both Cyfrowy and Metel, said the EBRD’s involvement was “an important validation of our strategy.”
The transaction saw Cyfrowy acquire Metelem shares in exchange for its own new shares with a total issue price of nearly PLN6.15bn. The EBRD has sold its 16.2% stake in Metelem to Cyfrowy and acquired a 7.9% in the media group. The bank’s ICT director Izzet Guney said the transaction marks its largest capital investment in Central and Eastern Europe.
As reported last month, Cyfrowy secured a PLN3bn (US$991.4m) credit facility with a consortium of more than 20 financial institutions led by ING, PKO Bank Polski and Societe Generale to refinance debt. Specifically, this included a PLN1.4bn (US$483.6m) 4.5-year term loan raised in March 2011 and €350m of 7.125% senior secured notes due 2018.
According to Cyfrowy CFO Tomasz Szelag the new credit facility will also allow Metel debt to be refinanced with better terms.
Cyfrowy president Dominik Libicki said all that remains to be done with respect to the merger is to complete formalities for introducing the new shares for trading on the Warsaw Stock Exchange.
Cyfrowy claims the deal has created the leading media and telecoms group in the region and one of the largest companies in Poland.
