Poland’s Netia agrees to buy TK Telekom

Polish service provider Netia has signed a preliminary agreement to buy 100% of shares in TK Telekom from the Polish railway, PKP Group.

Netia will pay PLN221 million (€54.5 million) for TK Telekom, in a deal that will expand Netia’s infrastructure footprint and increase its fibre network footprint with approximately 7,500km of fibre backbone.

“The transaction will increase scale up Netia Group’s operations by over 11% in general and by over 28% in the B2B segment in particular,” said Netia Group’s head of strategy and corporate development, Andrzej Kondracki.

Netia CEO, Paweł Szymański, said: “The acquisition of TK Telekom will significantly increase Netia’s assets base, expand our fibre optic infrastructure footprint as well as contribute a portfolio of strategically important clients.

“The acquisition of TK Telekom represents another step in Netia’s consolidation of the Polish telecommunications, which is also one of our strategic goals.”

The enterprise value of the transaction represents approximately 5.2 times TK Telekom’s pro-forma EBITDA for 2014. Completion of the deal is subject to clearance by the Polish competition office (UOKIK) and approval from PKP’s shareholders.