By Digital TV Europe

Leading Polish pay TV operator Cyfrowy Polsat has agreed to buy a majority stake in the market’s third-placed mobile operator Polkomtel, in a deal worth roughly PLN5.15 billion (€1.23 billion). Cyfrowy, which had 3.55 million pay TV subscribers at the end of the first half this year,according to Informa’s WBIS, said the deal will establish it as “the largest media-telecommunications group in Poland.”

The firm said it will buy an 83.8 per cent stake in Metelem Holding Company Limited, the firm that holds full control over Polkomtel – which had 13.9 million mobile subscriptions at the end of the third quarter (WCIS+) – in exchange for Cyfrowy Polsat shares.

Metelem was valued at PLN6.15 billion (€1.55 billion), with Cyfrowy Polsat due to issue 243.93 million shares in order to complete the deal, at a price of PLN21.12 each.

“I am confident that thanks to this transaction both Cyfrowy Polsat and Polkomtel will gain new possibilities for development in the dynamically changing and highly competitive market environment,” said Dominik Libicki, President of the Management Board of Cyfrowy Polsat.

“The strategy of Cyfrowy Polsat Group, based on providing the best entertainment and telecommunication services using the latest technologies on all consumer devices, remains unchanged. Polkomtel fits it perfectly and provides a fantastic opportunity for significant acceleration of its execution.”

Completion of the transaction is expected in mid‐2014, dependent on Cyfrowy Polsat and Metelem shareholder approval, and a successful refinancing of Cyfrowy Polsat’s debt.