Mergers and Acquisitions News

Vectra and Multimedia Polska closer to merger

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After about 1.5 years from the commencement of the proceedings, UOKiK published the conditions that Vectra must meet in order to take over Multimedia Polska. This is a step towards closing a transaction worth about PLN 3 billion and selecting a new market leader for TVK in Poland.

UOKiK gives conditional approval – necessary sale of the network

According to the imposed condition, Vectra will have to sell its network or Multimedia in eight towns (Gorzów Wielkopolski, Kwidzyn, Łowicz, Olsztyn, Ostróda, Pogórze, Pruszcz Gdański and Stargard). Vectra will establish new companies to which it will transfer property from each of the cities listed – including contracts with subscribers, telecommunications infrastructure, contracts with employees, accounting and technical documentation and subscriber bases. These companies will then be sold to an independent investor. The buyer will not be able to belong to the Vectra capital group or be jointly controlled by any entity in that group. It will have to be accepted by UOKiK.

Until the sale, the new companies will have to provide pay-TV and fixed broadband access services at a level not worse than that of Vectra or Multimedia. In addition, until the sale, Vectra will not carry out active marketing activities to attract subscribers using these networks.

Release of subscribers

Another condition is to allow subscribers from 13 places to change freely the provider of services. This will be possible in Barcin, Inowrocław, Kruszwica, Lubicz Dolny, Łęczyca, Mogilno, Nakło nad Notcią, Piechcin, Słubice, Strzelno, Suwałki, Szubin and Świnoujście. Within seven months of the decision becoming final, Vectra must inform customers that within the next nine months they can terminate their pay-TV and/or fixed-line broadband access agreement free of charge. This will apply to agreements with Vectra and its subsidiaries, including Multimedia.

New market leader in TVK

The network of both operators reaches about 4.3 million subscribers. According to PMR data, in total Vectra and Multimedia Polska have a database of over 1.5 million TV service subscribers and over 1 million broadband Internet access subscribers. For comparison, the largest TVK operator in Poland, UPC Polska, has a database of over 1.2 million TV service subscribers and an equivalent number of Internet access subscribers.

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