Published: October 3, 2011
KGHM will sell telecoms company and focus on natural resources.
Netia, a Polish fixed-line telecoms company, has increased its mobile phone and broadband coverage by agreeing to buy Telefonia Dialog.
The company will be sold by mining group KGHM Polsla Miedz for PLN945mn (US$286mn) in cash. KGHM will use the proceeds to invest in the natural resources market.
The deal is subject to competition clearance. Under the terms of the agreement, if the deal does not receive approval by July 2012 Netia will end its interest in the company.
This is the second telecoms company KGHM has sold in recent months. In July it joined PKN ORLEN, PGE, Vodafone and Węglokoks in agreeing to sell Polkomtel to Spartan Capital.
Netia is being advised by Raiffeisen Investment, Lazard and Rabobank. It is receiving legal services from Weil Gotshal Manges. KGHM is represented by Rothschild and law firm Gide Loyrette Nouel.