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).
Sources confirmed that Commerzbank,…
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).
Sources confirmed that Commerzbank, ING and RB International have been appointed bookrunners and MLAs for the PLN890m debt package.
A source told TelecomFinance that the general syndication would be launched the week starting April 4 and that a banks meeting was scheduled for the week starting April 11.
Commitments are due by the end of April.
TPSA specified that the sale was made alongside its subsidiary Bilbo.
TPSA CEO Maciej Witucki stated: “This agreement is in line with TP Group’s strategy of streamlining our business and focusing on our core activities”.
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 added 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.
