Play signs call option deal for Virgin Mobile Polska

WSE-listed mobile operator Play signed a call option agreement to buy Poland's biggest mobile virtual network operator (MVNO) Virgin Mobile Polska in 2020, the company said in a market filing. “These agreements give Play, among others, a call option to acquire all shares in VMP during 2020 at an agreed valuation methodology based on VMP's one-time annual revenue adjusted by certain elements,” Play explained. In addition, the agreements define the terms of future cooperation between Play and VMP, which started when VMP was launched, assuming that the minimum level of guaranteed payments to Play will be higher by about PLN 25 million, reaching some PLN 84 million in 2018-2021. “Play is satisfied with these contracts because they further strengthen our position as a leader on the Polish mobile market,” the statement concluded. At end-2016, Virgin Mobile Polska had 412k clients.