Last minute financial barriers to El-Net's take over

Pekao SA is demanding an additional zł. 3 million from Raiffeisen Investment Polska (RIP) for the sale of El-Net's debts which is controlled by telecom operator Elektrim Telekomunikacja (ET). This is the largest barrier in the process to finalize the take over of El-Net by RIP and two other financial institutions. Another barrier is the fact that El-Net is looking forward to consolidate with a sector investor, either Netia or Dialog. Financial investors have reached an agreement with the management of ET and the main creditor of El-Net, which is BRE Bank. According to Puls Biznesu, ET is to receive zł. 5.8 million for a 100% stake in El-Net. The consortium will also issue financial guarantees of zł. 20 million for the operator. The only condition is to allow future investors to conduct full due diligence on the company. So far, three companies which have been trying to go through this process have not managed to receive all the necessary information. (Puls Biznesu, p. 10) A.K.