Cyfrowy Polsat moves to take control of Netia

Polish pay TV operator Cyfrowy Polsat is to take a 32% stake in fixed-line operator Netia, with plans to up its stake to 66% through a tender offer.

Cyfrowy Polsat is buying its stake for PLN638.8 million (€152 million), giving Netial an overall value of PLN638.8 million.

Cyfrowy Polsat described the move as a strategy investment aimed at further developing a multi-play offer and strengthening the implementation of its convergence strategy.

Cyfrowy Polsat and Polkomtel president Tobias Solorz said that Netia represented a valuable infrastructure play for the pay TV operator, taking it into a completely new market. He said that the two businesses were “perfectly complementary” and the acquisition of a majority stake in Netia would enable the pay TV operator to strengthen its offering of integrated services.

Netia has a national fibre network with a presence in 48 Polish cities and a reach of 2.5 million homes and businesses. The company has close to one million residential customers, which Polsat has identified as a potential market for upselling of its products as part of its multi-play strategy.

Solorz said that the pay TV operator will be able to compete effectively with cable in the multi-play market for the first time. Cyfrowy Polsat already offers a range of convergent packages based on its collaboration with the Plus mobile network and through its SmartDOM brand.

Cyfrowy Polsat said that the Netia network would enable it to expand its telecommunications services and also enable rapid expansion of its mobile network capacity.

It said the acquisition would deliver synergies in the range of PLN250 million in capex and benefits to the tune of PLN550 million in additional revenue and operating costs synergies.