Raiffeisen Investment about to take over EI-Net

Over the next few weeks, Austrian Raiffeisen Investment (RI) will conclude the take over of 100% stake and all liabilities in independent telecom operator El-Net from Elektrim Telekomunikacja and a consortium of banks. The market is filled with gossip that the transaction might be carried out in November. The Austrian company will not work alone, but in a consortium with unnamed private equity funds. "In this way El-Net will gain the strong support of credible financial institutions and will be able to carry on growing. We are interested in organic growth, but one should not forget about the unavoidable market consolidation processes. With strong financial backing El-Net should be active in this field," said RI board member Martin Schwedler. RI representatives would be drawn on disclosing the sums of money involved in the transaction but, "It will be at market prices," said Schwedler. El-Net is in quite a good financial state, but its operating profits are constantly eaten away by servicing its zł. 1.5 billion debt. (Puls Biznesu, pp. 1, 7) M.M.