KGHM Polska Miedz owns Telefonia Lokalna after mega stock purchase

KGHM upped its ownership in Telefonia Lokalna (TL) to 100% after it bought some 1.2 million shares of the fixed-line operator from Polskie Sieci Energetyczne (PSE) and the remaining 164,000 shares from Tel Energo. The entire transaction cost about zl.164 million and was paid for from KGHM' s own resources. According to the terms of the deal, after becoming the owner of TL, KGHM will assume all financial obligations made before by PSE and Tel Energo. The agreement also stipulates that if within the next two years KGHM decides to unload its shares in TL at a price higher than its current value, the difference gained would have to be paid to PSE and Tel Energo. KGHM also said it is looking for another strategic investor for TL. If however an investor is not found, the agreement allows PSE to buy back TL shares from KGHM at a higher price. (Prawo i Gospodarka, p.10)