Vodafone Won't Significantly Raise Polkomtel Stake - Source
September 02 2009 - 1:23PM
Dow Jones News
Britain's Vodafone Group PLC (VOD.LN) won't significantly raise
its shareholding in Polish mobile phone operator Polkomtel, where
it already holds 24.39%, a person familiar with the matter told Dow
Jones Newswires Wednesday.
Vodafone's decision means an initial public offering for
Polkomtel is now the most viable option for Polish state-controlled
shareholders to exit the investment, as they look to sell off their
non-core assets, the person added.
"For many years, Vodafone has been declaring its interest in
upping its stake significantly. Now, for the first time, it has
given up the plan and is no longer interested," the person
said.
A Vodafone spokesman at the company's U.K. headquarters declined
to comment on the issue.
Poland's top mobile phone operator by revenue, Polkomtel was
created in 1995 by mostly Polish state-controlled heavy-industry
companies and two foreign partners; AirTouch International, which
later merged with Vodafone, and Denmark's TeleDanmark
Communications, later TDC A/S (TDC.KO).
In 2006, Vodafone signalled its interest in increasing its
24.39% stake in Polkomtel, and, following TDC's decision to sell
its Polkomtel stake, in late 2008 exercised its right to buy more
shares.
Poland's oil refiner PKN Orlen (PKN.WA) with 24.39%, copper
miner KGHM (KGH.WA) with another 24.39%, and power grid Polska
Grupa Energetyczna with 21.85% have all expressed their interest in
selling their shares as part of their drive to dispose of non-core
assets . PKN Orlen said Monday it hired Nomura Securities to advise
on the sale, while PGE declared Tuesday it would start a search for
an adviser.
All Polkomtel shareholders have the right of first refusal to
buy the shares.
For its part, the Polkomtel executive board hired UniCredit CAIB
to analyze the possible divestment options, although no formal
decision has yet been made on the preferred transaction structure,
the source said.
"Various scenarios are being analyzed that would help the Polish
companies exit Polkomtel," the source said.
Plans for an initial public offering would require unanimous
agreement of all major shareholders, the person added.
According to the company's current charter, the consent of 85%
of shareholders is required for the change of the no-competition
clause that binds shareholders within Poland. If Polkomtel was to
organize an IPO, that clause would need to be revised since it
would be discriminatory for other Poland-based telecommunications
operators that might be willing to buy shares on the market.
Analysts believe the IPO would allow Vodafone to control
Polkomtel without increasing its own participation, as the post-IPO
ownership structure would likely be dispersed.
"In the stock market scenario, the operator could be floated,
but only if Vodafone agrees, and for Vodafone, that solution may
turn out to be good," said DI BRE brokerage analyst Michal Marczak.
"It would not need to buy out all the remaining shares and still
control the business."
If it happens, the value of Polkomtel shares on offer could
reach 12.9 billion zlotys ($4.41 billion), making it one of the
largest initial offers in the history of the Warsaw Stock
Exchange.
Marczak estimated the total market capitalization of Polkomtel
at PLN15 billion to PLN17 billion once floated, noting that the
company's entry to the Warsaw Stock Exchange would also provide an
attractive asset for investors and put pressure on France Telecom
SA (FTE)-controlled Telekomunikacja Polska (TPS.WA), which has a
market cap of PLN22 billion.
-By Marcin Sobczyk, Dow Jones Newswires; +4822 447-2432;
marcin.sobczyk@dowjones.com
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