Montagu close to selecting Emitel next round bidders

Bidders for Polish telco Emitel are expected to find out soon if they have made it to the next round, TelecomFinance was told. A selection could be made as soon as next week.
One source said that a secondary buyout was the most likely scenario, while,…

Bidders for Polish telco Emitel are expected to find out soon if they have made it to the next round, TelecomFinance was told. A selection could be made as soon as next week.

One source said that a secondary buyout was the most likely scenario, while, according to another source, infrastructure funds including EQT, Axa, Arcus, Alinda, First State and Antin are looking at the asset.

This source commented that infrastructure funds were better placed to acquire the asset than traditional private equity because of the cost of capital.

Three or four bidders are expected to proceed to the second round of the process, which is being run by Goldman Sachs.

Emitel, which was acquired by Montagu Private Equity only two years ago, is seen as a more attractive asset now the digital switchover in Poland has completed. One source put a value of around €700m on the asset. When Montagu acquired the business in June 2011, it said the deal value was €425m.

Emitel is an infrastructure operator for terrestrial radio and TV broadcast in Poland, which also provides services to mobile network operators.

Montagu declined to comment.