U.K.'s Vodafone to Pay $145 Million to Boost Stake in Poland's Polkomtel
By Dorota Bartyzel
Vodafone to Pay $145 Mln to Boost Stake in Polkomtel (Update4)
(Adds details in 7th paragraph.)
Warsaw, Oct. 14 (Bloomberg) -- Vodafone AirTouch Plc, the
world's largest wireless operator, agreed to pay $145 million to
increase its minority stake in Polkomtel SA, strengthening its
position in Poland's fast-expanding mobile phone market.
Vodafone said it will buy 825,000 shares in Polkomtel,
Poland's No. 2 mobile phone operator, from Stalexport SA, a
Polish steel trading company. The additional 5.5 percent stake
would increase Vodafone's holding in Polkomtel to 24.75 percent,
making it the company's largest single shareholder.
The announcement comes a week after Berkshire, England-based
Vodafone said it was raising its stakes in Japan's nine regional
mobile phone companies, part of its strategy to expand in large
mobile markets since its $73.7 billion takeover of AirTouch
Communications Inc. was completed in June. In Poland, where the
market is forecast to double in five years, Vodafone is competing
against Deutsche Telekom AG, France Telecom SA and others.
``Since the competition is getting very sharp, Polish
(mobile phone) operators need the best possible partners --
meaning world-known wireless companies with long-time
experience,' said Flawiusz Pawluk, an analyst at Erste
Securities in Warsaw.
Growth
Poland's mobile phone market has grown to almost 3 million
clients from about 50,000 four years ago. Only about 5 percent of
Poland's 40 million population had mobile phone service at the
end of 1998, and analysts expect the level to double within the
next five years.
Polkomtel, which operates GSM digital mobile phone service,
has about 1.3 million clients and its main competitor, Polska
Telefonia Cyfrowa SA, has about 1.5 million clients. Earlier this
year Centertel SA, another Polish mobile company majority-owned
by state-controlled Telekomunikacja Polska SA, won a GSM license
and is seeking to expand through lower fees.
Vodafone's plan to increase its holding in Polkomtel is
subject to other shareholders' approval and may be made final in
about 90 days.
Polkomtel's other shareholders include KGHM Polska Miedz SA,
Europe's largest copper producer, and Polski Koncern Naftowy SA,
Poland's biggest refiner and fuel distributor, which each have a
19.5 percent stake. TeleDanmark A/S, a Danish phone company, also
owns 19.5 percent. Shareholders must approve Vodafone's
PTC is majority owned by Elektrim SA, a Polish group with
telecommunications and power plants stakes, while U.S.-based
Media One and Deutsche Telekom of Germany each own 22.5 percent.
Vodafone shares fell 1.3 percent, or 3.75 pence, to 295.75. |
