Polish operators fined for misconduct in mobile TV market (Poland)
Polish competition authority UOKIK (The Office of Competition and Consumer Protection) has imposed fines on four of its mobile operators for their conduct in the mobile TV market. According to reports, UOKIK has asked all members of the cartel to stop their practices and have been fined a total of US$ 34 million. The Polish watchdog has reportedly accused the operators of obstructing the development of the mobile TV market.
As per sources, the fines imposed on the operators were in accordance with their market share. France Telecom’s unit was asked to pay the highest at US$ 10.5 million, followed by T-Mobile at US$ 10.2 million, PolkomTel at US$ 10 million and Play at US$ 3.2 million.
Polish Billionaire to own Polkomtel (Poland)
Poland’s second-largest mobile-phone company will be sold to Polish billionaire Zygmunt Solorz-Zak for $5.5 billion. The deal is said to be a benchmark in the history of acquisitions by a Polish investor. According to sources, the $ 956,029 billion of debt and dividend due to current owners were not included in the telecom deal.
The shareholders of Polkomtel including Vodafone Group PLC signed the deal which initiated the expansion of Solorz- Zak’s media and communication business. Polkomtel has around a client base of 14 million for voice and Internet services. The closest competitors of the company in the telecom market are Deutsche Telekom AG’s Polska Telefonia Cyfrowa and France Telecom SA’s Telekomunikacja Polska SA unit.
According to reports, after the deal, the total worth of Polkomtel as an enterprise came around $5.76489 billion, which is 6.4 times higher than the company’s earnings in 2010. Polkomtel sought advice on the deal from Goldman Sachs Group Inc., ING Groep NV, Nomura Holdings Inc. and Rothschild, while billionaire Solorz-Zak sought expert advice from Trigon Dom Maklerski SA, Deutsche Bank AG and Credit Agricole SA.
Solorz-Zak stated that the whole deal was financed for by Credit Agricole and Deutsche Bank AG while Societe Generale SA, Royal Bank of Scotland Group Plc and PKO Bank Polski SA participated in funding.
Polkomtel introduces Volleyball matches on WAP portal (Poland)
Polish mobile operator Polkomtel is all set to bring selected matches of the Volleyball League on its portal wap.plus.pl, broadcast by TV Polsat Sport.
The company will charge a one time fee of US$0.86 for its transmission. Customers will not have to bear any additional charges for data transmission. The site also offers video archives of the most interesting matches and interviews with players.
Polkomtel hinders investigation, fined (Poland)
Poland’s Office of Competition and Consumer Protection, UOKiK has fined Polkomtel US$45 million for allegedly refusing to provide access to hard discs, delayed their inspection operations as well as provided only selected documentation as part of a larger investigation into anti-competitive behavior.
The decision regarding Polkomtel’s obstruction relates to the raid carried out by Uokik in December, 2009, simultaneously at the premises of PTC, Polkomtel, P4, Info TV FM and NFI Manga Polonia. UOKiK undertook the raid as part of an investigation as to whether there was a competition-restricting agreement concerning mobile television services.
During the inspection, it is claimed that Polkomtel and Polska Telefonia Cyfrowa hindered the operations. Therefore, the President of UOKiK instituted proceedings aiming at imposing financial penalties on these companies.
The decision is not final. The undertaking may lodge an appeal to the Court of Competition and Consumer Protection.
Seven groups shortlisted for Polkomtel (Poland)
Seven companies have been reportedly shortlisted to buy Polish cellco Polkomtel. According to reports, the list includes TeliaSonera, Telenor, four private equity fund consortia led by Blackstone Group, KKR, Prudential and Bain Capital, as well as Polish media mogul Zygmunt Solorz-Zak.
According to reports, Solorz-Zak had placed the highest bid -worth more than US$6.32 billion. The amount is above the highest valuation of Polkomtel, prepared by BZ WBK brokerage for one of the cellco’s shareholders. Reports added that a shortlist of bidders will be selected to conduct due diligence within the next few days.
Polkomtel’s current shareholders are Vodafone Group, Polish oil refiner PKN Orlen and copper mining group KGHM Polska Miedz, each with 24.39% stakes. Polish power utility PGE Polska Grupa Energetyczna owns a 21.85% stake while coal miner Weglokoks holds 4.98%.
TeliaSonera submits bid to buy Poland’s Polkomtel (Sweden)
Sweden’s TeliaSonera has confirmed that it has submitted a bid for Polish mobile network operator, Polkomtel – which has been put up for sale by its shareholders.
The company is supposed to be worth around US$5 billion.
According to TeliaSonera’s spokeswoman, they did put in an indicative offer and the advisers to the sellers will select who can continue.
Polkomtel, which trades as the Plus network is owned by Vodafone (24.4%), PKN Orlen (24.4%), KGHM Polska Miedz’ (24.4%), Polska Grupa Energetyczna (21.85%) and Weglokoks (4.98%)
It had been previously reported that Apax Partners, Blackstone, TPG and CVC Capital Partners are among the big private equity groups working on potential bids for the Polish company, although that was before the formal tender document was issued last month.
In total, some 20 companies, including Telenor, Telefonica and America Movil have purchased bid documents, although that is sometimes for information about competitors rather than an indication that they want to buy the company.
Vodafone has a right of first refusal to buy out the other shareholders but has indicated that it would prefer to sell instead and recently split the shareholding out from its European division indicating that a sale was imminent.
Polkomtel to receive indicative offers by 21 February? (Poland)
If sources are to be believed, indicative offers for Polish mobile network operator Polkomtel are due by 21 February.The sellers are expected to cut down the shortlist of potential suitors to conduct due diligence by early March.
According to sources, the long-awaited information memorandum on Polkomtel was sent out last Monday. US buyout firms TPG and Blackstone Group are reportedly mulling over a shared bid, while London-based CVC Capital Partners and Apax Partners are looking at making their own bids for the company, as is Swedish telco TeliaSonera.
The eagerly expected sale has been complicated by the fact that Polkomtel is owned by five companies, with the Polish government holding substantial stakes in three of them, and each retaining their own financial advisor.
Poland’s largest power group, PGE holds a 21.85% stake in Polkomtel and is advised by ING Securities; oil refiner PKN Orlen holds 24.39% and is advised by Nomura Holdings; copper miner KGHM Polska Miedz also has 24.39% and is advised by Rothschild.
Poland’s Treasury owns stakes of 84.99%, 27.52%, and 31.79% in the three companies, respectively. The remaining shareholders in Polkomtel are Vodafone Group, which has a 24.39% stake, and coal miner Weglokoks, which is wholly owned by the Treasury and holds a 4.98% stake.
Polkomtel plans to collaborate with Polsat for LTE (Poland)
Polish mobile operator Polkomtel’s CEO, Jaroslaw Bauc has stated that the company is looking at various options to launch LTE services, including partnering the Polsat group which holds 1800MHz band frequencies.
Bauc added Polkomtel is also preparing to take part in auctions for 2600MHz and 800MHz frequencies.
Owner of Polsat, Zygmunt Solorz-Zak has recently confirmed that he is interested in investing in Polkomtel, following the latter’s domestic shareholders announcing that they are looking to exit.
Deutsche Telekom takes over Poland’s PTC
Deutsche Telekom AG has settled a long-running dispute with France’s Vivendi SA and a Polish corporation over the ownership of Polish mobile network PTC, allowing it to take full control of one of the country’s major operators.
According to Deutsche Telekom, it will pay a total of US$1.9 billion to Vivendi and Poland’s Elektrim under the agreement.
The dispute was focused on a 48% stake in Polish mobile network Polska Telefonia Cyfrowa (PTC) on which Deutsche Telekom claimed that it had exercised a call option in 2005. At that point, it already held 49%.
The agreement will help the German company take 100% ownership of PTC. The company is acquiring the final 3% by taking control of two holding companies owned by Vivendi and Elektrim.
According to Deutsche Telekom, Chief Financial Officer Timotheus Hoettges, the absolute legal certainty that is now recognized by all parties is a clear message regarding PTC’s strategic development and paves the way for the future. The company has untangled the knot.
As per Vivendi, it will receive some US$1.65 billion under the agreement and give up any rights to PTC shares. The deal also will allow Elektrim to exit bankruptcy, with all its creditors being repaid. The agreement is subject to the completion of several legal steps in Poland.
Deutsche Telekom stated that PTC is the third-biggest mobile operator in Poland, by far the largest of the once-communist eastern countries that have joined the European Union over recent years. It operates Cellphone services under the Era brand and has a market share of 29%, only just behind competitors PTK Centertel and Polkomtel.
Vodafone looks to sell 44% stake in mobile phone operator SFR
UK telecom operator Vodafone is considering to sell its 44% stake in mobile phone operator SFR to French communications and entertainment giant Vivendi, British newspaper The Observer reported.
The Observer said also that Vodafone would unveil soon the sale of its stake in Polish mobile phone operator Polkomtel in a GBP800m (USD1.3bn/EUR942.6m) deal. According to market experts, the divestment of the SFR shareholdings could fetch up to EUR8bn. Vivendi CEO Jean-Bernard Levy said in November that the acquisition of SFR was a top priority for the company. Vodafone and Vivendi have refused to comment.
According to Reuters sources, Goldman Sachs would advise Vodafone in the auction of its Polkomtel stake. Country: , Poland, France Sector: Telecommunications Target: Polkomtel SA, SFR Buyer: Vivendi SA Vendor: Vodafone Group plc Deal size in USD: 1.3bn, 10.7bn Type: Divestment Status: Auction Comment: The deal sizes are potential.
