The European Bank for Reconstruction and Development (EBRD) has agreed to acquire a 7.39% stake in Cyfrowy Polsat, bringing Poland’s largest media group a step closer to completing its merger with mobile operator Polkomtel (Play).
Cyfrowy agreed in…
The European Bank for Reconstruction and Development (EBRD) has agreed to acquire a 7.39% stake in Cyfrowy Polsat, bringing Poland’s largest media group a step closer to completing its merger with mobile operator Polkomtel (Play).
Cyfrowy agreed in November to buy a majority stake in Polkomtel’s sole owner, Metelem Holding Company, in a PLN5.15bn (US$1.65bn) deal. The media group said it would issue new shares to fund the transaction, to be taken up by Metelem.
At the time, Cyfrowy revealed its wish to acquire a 16.2% stake in Metelem from the EBRD, saying that, if the bank accepted, it would issue 291.19 million new shares at PLN21.12 (US$6.78) each. Upon closing, Cyfrowy said Argumenol Investment would own 7.09% of its shares, Karswell 19.29%, Sensor 9.55% and the EBRD 5.77%.
Both Cyfrowy and Metelem are controlled by billionaire Zygmunt Solorz-Zak.
Cyfrowy chairman Dominik Libicki said in a statement that the company welcomed the EBRD’s decision to participate in the deal.
“Not only does it enable us to acquire a 100% stake in [Metelem], which is in full control of Polkomtel, it also confirms the validity of the transaction and … logic of the business.”
EBRD ICT head Izzet Guney said the bank supports the deal because it will create a “unique” combined media and telecoms platform in the region.
“We have confidence in the management team and look forward to significant improvements in [Cyfrowy’s] effectiveness as well as benefits of the synergies that further strengthen … the company.” He added that the bank will be an active shareholder and looks forward to future opportunities to contribute to Cyfrowy’s development.
Cyfrowy’s sole financial adviser for the EBRD deal was Trigon and its legal adviser was Greenberg Traurig. The EBRD received legal advice from Locke Lord and Dentons.
Cyfrowy said the merger is expected to close in mid-2014, subject to certain legal conditions.