Netia set to take over PKP’s TK Telekom

The move is in line with PKP’s privatisation plans, and with the sale billed at PLN 221 million, Netia will increase its infrastructure and market position thanks to the acquisition.

TK Telecom operates a network spanning just under 30,000 kilometres nationwide, connecting 300 cities and towns and hundreds of institutions, business and private homes.

A statement published by Netia quotes the company’s chairman, Paweł Szymański, as saying “thanks to the transaction and acquisition of TK Telekom, the Netia Group will increases its asset base, develop its fibre-optic infrastructure and gain a strategically important client base”.

“The purchase of TK Telekom is Netia’s next step in consolidating the Polish telecoms market, which also is in line with [the company’s] strategic goals,” Szymański added.

The purchase of TK Telekom also boosts Netia’s share of the market by 11 percent and as much as 28 percent in the commercial sector. The operator will also take over some 7,500 kilometres of TK Telekom’s fibre-optic skeleton network.

Meanwhile, the shedding of TK Telekom by the PKP Group is the next step in the rail operator’s privatisation plans, with the sale of telecoms company ongoing since 2011.

“Today’s contract is proof that the PKP board is consistent with the realisation of the objectives laid out by the law on commericalistion, restructuring and privatisation of the PKP state-owned company, [the sale] is also an aim laid out by the PKP Group back in 2012,” said PKP chairman Jakub Karnowski in a statement.

The move also helps PKP pay back historical debts outstanding, which currently amount to PLN 800 million.

In order for the transaction to go ahead, Netia still needs greenlighting from competition and consumer watchdog UOKiK, while PKP is still awaiting shareholder approval. (jb)

Source: PAP