German telecom giant Deutsche Telekom AG (DTEGY) said it has signed an agreement to take over sole ownership of Polish mobile operator Polska Telefonia Cyfrowa. The deal calls for DT to pay more than $1.8 billion, on top of $900 million it has already paid, to French media company Vivendi and Polish company Elektrim for the 51% stake in PTC that it did not previously control.
In 2005, DT exercised a call option to increase its 49% interest stake in PTC to 97%, and in 2006 made the initial $900 million payment to Elektrim. A majority of the new payment will go to Elektrim to secure the 97% control, with the rest of the funds going to acquire two holding companies controlled by Elektrim and Vivendi that own the remaining 3%.
According to DT, which also owns domestic operator T-Mobile USA Inc., PTC is currently the third-largest mobile operator in Poland with 29% market share. Its two larger rivals are PTK Centerel with 31% market share and Polkomtel with 30% market share. DT added that in the first nine months of 2010, PTC posted earnings before interest, taxes, depreciation and amortization margin of 37%.
“This is a good day for the Polish mobile communications market and our Polish customers,” said DT CFO Timotheus H
Deutsche Telekom takes control of Polish operator
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