Telekomunikacja Polska (Orange Polska) has agreed to sell internet portal Wirtualna Polska (Virtual Poland) to Grupa O2 for PLN375m (US$123.6m), equivalent to PLN4 (US$1.32) per share.
Grupa O2 is a Warsaw-based internet company. Mobile operator Orange…
Telekomunikacja Polska (Orange Polska) has agreed to sell internet portal Wirtualna Polska (Virtual Poland) to Grupa O2 for PLN375m (US$123.6m), equivalent to PLN4 (US$1.32) per share.
Grupa O2 is a Warsaw-based internet company. Mobile operator Orange Polska, a subsidiary of French incumbent Orange, expects to complete the transaction in Q1 2014, subject to clearance from the Polish Competition Office.
The telco predicts the transaction will result in a capital gain of about PLN180m, which will positively affect its EBITDA and profit before tax in 2014.
Private equity firm Innova Capital is financing the deal via its special purpose vehicle, European Media Holding.
Grupa O2 said in its own statement that the acquisition and merger mark the formation of a new media group, Grupa Wirtualna Polska.
Grupa O2 management board member Jacek Swiderski said the merger will give the new company the scale of operations and audience required to boost organic growth.
Meanwhile, Innova Capital managing partner Krzysztof Krawczykhis said firm believes the deal will create the number one internet company in Poland, adding that it will look for add-on acquisitions outside the areas the companies currently operate in.
Bruno Duthoit was, last month, appointed as the head of Orange Polska. He replaced Maciej Witucki, who has become chairman of the supervisory board after nearly seven years as CEO.
