Liberty Global to acquire Multimedia Polska for $760m
Liberty Global's UPC Polska unit agrees to acquire the cable business of Multimedia Polska SA in a PLN 3 billion (c. $760m) all-cash deal
The final purchase price is subject to adjustments depending on Multimedia’s financial performance prior to closing but Dentons, the law firm advising Liberty Global on the deal, say it’ll be “approximately $800 million”.
“This acquisition will significantly increase our scale in Poland, where we are already the largest cable operator. It will also enhance our ability to invest in cutting-edge products and services for Polish consumers and businesses that will help drive organic growth across our enlarged footprint of over four million premises,” said Mike Fries, CEO of Liberty Global.
“Upon closing of the transaction, we will begin upgrading the Multimedia network, after which Multimedia’s customers will be able to enjoy superfast broadband speeds and our next-generation video service Horizon TV. Alongside our ongoing and extensive new build programme across the central and eastern European region, we’re proud to continue our investment in state-of-the-art broadband networks, which represent the core infrastructure of our age in markets around the world.”
Multimedia Polska is Poland’s number three cable operator and as of June 30, 2016, passed 1.6 million homes, mainly through its hybrid fibre-coaxial (HFC) cable network, serving 832,000 unique customers. As a result of the deal, UPC Polska will have a subscriber base of 2.2 million, comprising approximately 50% of the Polish cable market.
The acquisition excludes Multimedia’s existing insurance, gas and energy operations, which will be retained by the shareholders of Multimedia.
“Dentons is proud to have advised on this major media acquisition in central and eastern Europe,” commented Rob Irving, co-chair of the Dentons global private equity group, who co-led the transaction with Igor Ostrowski, head of the Dentons technology, media and telecommunications sector group in Europe.
“This deal represents a strategic move in CEE by one of the top multinational players in the sector. Such significant transactions showcase our strengths in cross-border M&A, as well as our capabilities to help international businesses expand in these important growth markets.”
Credit Suisse International acted as financial advisor to Liberty Global for the transaction, which is subject to customary closing conditions, including regulatory approval, and is expected to close within the next twelve months. GTB