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Dialog searching for acquisitions


2007-04-27

Telefonia Dialog, an alternative telecommunications operator owned by the copper producer KGHM, intends to acquire more telecoms industry companies and plans to spend several hundreds of millions of zloty on this.
According to press reports, Dialog is interested in Crowley Data Poland and GTS Energis, among others. The acquisitions would require as much as PLN 500m (€131.6m) and are to be paid for with money from a bank loan. The operator is going to repay the loan by using funds raised via an IPO scheduled for the beginning of 2008. The stock market debut would enable KGHM to dispose of some of the shares which it now holds in the operator, and the acquisitions would increase the value of the company and allow it to sell the stake at a higher price.

The revenues of Telefonia Dialog in 2007 are expected to reach PLN 540m (€142.1m), not including the money brought in by the companies being considered for acquisition. By the end of the year, the company is going to have 200,000 subscribers for broadband and around 440,000 for voice services within its own network, along with 100,000 voice subscribers connected via TP SA lines on the basis of the wholesale line rental (WLR) agreement.

The press has been speculating that Dialog is interested in purchasing MNI Telecom, a telecommunications operator owned by the listed MNI. The latter has announced that “a well-known, domestic operator” has sent a letter of intent on the possible purchase of MNI Telecom. The company in question has not, however, been named. Dialog has declined to comment on the matter.


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