Dial D for Deal: KGHM to buy all of Telefonia Lokalna
According to sources, Polish copper conglomerate KGHM Polska Miedz has
reached an agreement with Polskie Sieci Elektroenergetyczne (PSE) and
Tel-Energo about buying a 50% stake in Telefonia Lokalna (TL) making KGHM
the sole owner. "I have not heard about talks concluding amongst these
firms. The idea of creating a sole owner for the company is very good. I
hope the next step would be to introduce a strong branch investor," said
former KGHM president Stanislaw Siewierski. It is unofficially said that
the cost of the transaction will amount to $150 million. TL plans to spend
$800 million in network development over five years. During this time the
telephone operator plans to increase its subscriber base to 600,000 from
the current 60,000. TL plans to have a capacity for 250,000 numbers by the
end of this year. TL, besides Netia, is the most dynamically developing
local telephone operator. Netia will have 300,000 users by the end of
2000. Some say that it is possible that TL will merge with Netia. (Puls
Biznesu, page 1, 5)
