Multimedia Polska said that its owners have retained JP Morgan to carry out a strategic review.
Poland’s third largest cableco said in a statement today that “all options will be considered, including maintenance of the existing ownership…
Multimedia Polska said that its owners have retained JP Morgan to carry out a strategic review.
Poland’s third largest cableco said in a statement today that “all options will be considered, including maintenance of the existing ownership position,” thereby confirming earlier media reports.
The review will encompass all business operations as well as growth opportunities in the domestic telecoms and TV markets.
The company declined to comment further on media reports speculating that a potential merger with a direct competitor could mark the second largest consolidation deal in Polish history.
As reported yesterday, Polish press have said JP Morgan will send preliminary documentation to local operators Telekomunikacja Polska, Netia, Poland UPC, Vectra and Polska Telefonia Cyfrowa (T-Mobile) as well as several investment funds.
Any such deal would be subject to regulatory approval. A sector banker noted, speaking to TelecomFinance, that while an in-country consolidation deal is theoretically possible, a merger with number two player Vectra would face significant antitrust hurdles. He said Multimedia’s owners have tried to sell the company twice in the past.
UPC and Vectra are Poland’s number one and two cablecos respectively.
Multimedia stressed the review is at an early stage, adding an announcement will be made at its conclusion.
In the meantime, the company said shareholders “intend to continue to invest in and grow the business”.
M2 Investments, a subsidiary of US-based YTD LLC, has a 46.56% stake in the company while Tri Media Holdings and UNP Holdings, both controlled by Cyprus-based EVL, hold stakes of 24.29% and 10.43% respectively.
