Polish fixed-line player Netia has agreed a deal with state railway operator PKP Group to buy TK Telekom to strengthen its presence in the B2B fibre market.
Netia will pay PLN221m (US$61m) for 100% of TK Telekom, which has a fibre-optic backbone…
Polish fixed-line player Netia has agreed a deal with state railway operator PKP Group to buy TK Telekom to strengthen its presence in the B2B fibre market.
Netia will pay PLN221m (US$61m) for 100% of TK Telekom, which has a fibre-optic backbone network running along Poland’s railways.
The enterprise value of the transaction represents 5.2x EV/EBITDA based on TK Telekom’s pro-forma EBITDA for 2014, Netia said. This figure does not include the synergies Netia expects to achieve.
The takeover will be financed using available credit lines and is subject to approval from PKP’s shareholders and clearance from the Competition Office.
In a statement, Netia CEO Pawel Szymanski said the deal “will significantly increase Netia’s assets base, expand our fibre optic infrastructure footprint as well as contribute a portfolio of strategically important clients.”
Providing the transaction gets the greenlight, Netia’s total operations will grow by 11%, and by 28% in the B2B sector, the company said.
Szymanski added that the acquisition marked another step in Netia’s strategy to consolidate Polish telecoms.
PKP began the TK Telekom sales process in October 2014 and has been advised by mCorporate Finance and Audytel, with Weil Gotshal & Manges providing legal advice.
Hawe made a preliminary bid for TK Telekom, while Deutsche Telekom had also been seen as potentially interested. Exatel, which had been seen as an interested party, did not place a bid.
