Polish telecoms and DTH group Cyfrowy Polsat has moved to acquire telecoms infrastructure firm Midas Group in a deal valuing the target at some PLN1.2bn (US$301m), including debt. Tobias Solorz, president of Cyfrowy and its mobile unit Polkomtel, said the target’s assets “are not only complementary to our services, but also constitute one of the cornerstones of our strategy”.
Polish telecoms and DTH group Cyfrowy Polsat (WSE:CPS) has moved to acquire telecoms infrastructure firm Midas Group (WSE:MDS) in a deal valuing the target at some PLN1.2bn (US$301m), including debt.
Cyfrowy said in a statement that its mobile unit Polkomtel has acquired Cyprus-registered Litenite from Ortholuck which, like Cyfrowy, is owned by Polish billionaire Zygmunt Solarz-Zak. Litenite has a 66% stake in the Midas Group, which also includes wireless operators Aero2 and Sferia.
Polkomtel, which trades as Plus, bought the 100% stake in Litenite for a token €1 (US$1.1) which Cyfrowy said reflects the target had some PLN788m (US$198m) of debt as of 31 January 2016 and its only assets, other than cash, were the Midas shares of a similar value.
Cyfrowy described the indirect acquisition of the shares in Midas, which provides wholesale access to mobile broadband infrastructure, as “a strategic long-term investment”, saying it plans to integrate the company within its own corporate structure.
Shortly afterward, Cyfrowy said in a separate statement that Polkomtel has launched a tender offer to buy the remaining 34% stake in the Midas Group for PLN0.81 (US$0.21) per share. This equates to a total PLN407.5m (US$102.2m). The subscription period will run from 21 March to 19 April.
At the time of writing, Midas shares were trading at PLN0.80 each and the company had a market capitalisation of PLN1.2bn (US$301m).
Last September, Cyfrowy signed a PLN12.5bn (US$3.32bn) facility agreement with a syndicate of more than 20 banks to refinance debt at both the parent company and Polkomtel.
Tobias Solorz, president of Cyfrowy and Polkomtel, noted that his company had cooperated with Midas for many years.
“There are here are strong business and operational connections between us, and the assets of Midas Group are not only complementary to our services, but also constitute one of the cornerstones of our strategy,” he said.