Polish incumbent Telekomunikacja Polska (TPSA) has signed a preliminary agreement to sell TV radio and broadcast towerco Emitel to Kapiri Investments, a unit of UK private equity firm Montagu, for PLN 1.7bn (E425m). TPSA specified that the sale was made…
Polish incumbent Telekomunikacja Polska (TPSA) has signed a preliminary agreement to sell TV radio and broadcast towerco Emitel to Kapiri Investments, a unit of UK private equity firm Montagu, for PLN 1.7bn (E425m). TPSA specified that the sale was made alongside its subsidiary Bilbo.
The sale of Emitel is part of TP Group’s strategy to sell non-core assets, TPSA said. According to Maciej Witucki, TPSA CEO stated: “This agreement is in line with TP Group’s strategy of streamlining our business and focusing on our core activities”.
Welcoming the deal, Michal Chalaczkiewicz, Montagu Director responsible for CEE activities stated: “This marks Montagu’s first direct investment in Poland, and its second investment in Central and Eastern Europe (CEE). Emitel provides essential services in attractive and growing markets. The business has a strong track record of profitability, which we hope to build on by expanding the services it provides to broadcasters and telecoms providers across Poland. We are excited about working with what we consider to be a first-rate management team, and supporting the business in its next phase of development as an independent operator of broadcasting and telecom infrastructure.”
At least four candidates had reportedly been interested in Emitel, including France’s TDF, Innova Capital, EQT and Advent. The purchase price is significantly higher than the previous PLN600m-PLN1bn (E148m-E247m) estimates.
In a statement to the London Stock Exchange, TPSA’s management said the transaction – comprising 100% of Emitel’s share capital and voting rights – was worth more than 10% of TPSA’s share capital. It added that the deal would have add PLN1.2bn to its pre-tax profit for this year.
There are two conditions for the transaction, which must be completed by 31 July: Kapiri/Montagu must secure the approval of the Polish Competition and Consumer Protection Office (UOKiK), and TPSA must transfer all shares in Emitel to Bilbo.
TPSA was advised by Rothschild, White & Case and PwC, while Montagu was advised by Bastion and Allen & Overy. Ernst & Young, Arthur D Little and Solon Management Consulting carried out due diligence.
TPSA, which is controlled by France Telecom, separately announced that Pierre Louette – a media executive who has held senior positions at Agence France Presse and Havas – had been appointed to the advisory board, following the recent resignation of Olivier Barberot.
