WARSAW (8 May 2014) – International law firm Greenberg Traurig provided advice on Cyfrowy Polsat S.A.’s acquisition of Polkomtel, the operator of the “Plus” mobile network. The transaction creates the largest media and telecommunication group in the region and one of the largest corporations in Poland.
Greenberg Traurig advised Cyfrowy Polsat on all aspects of the transaction, starting from negotiating investment agreements with shareholders of Metelem (the parent entity of Polkomtel), including the European Bank for Reconstruction and Development. Based on the agreements Cyfrowy Polsat acquired shares in Metelem in exchange for its own new shares with a total issue price close to PLN 6.15 billion. Subsequently, Greenberg Traurig provided advice on the issue of the new shares and in negotiating an agreement with the minority shareholders of the company, as well as in drafting the prospectus for the purpose of having the new shares admitted to trading on the Warsaw Stock Exchange. The final workstream was to refinance the existing indebtedness of Cyfrowy Polsat. From a consortium of more than 20 financial institutions led by ING, PKO BP and Société Générale, the Company raised new loans totaling PLN 3 billion, which enabled it to repay its existing term loan facility and Senior Secured Notes (totaling in excess of PLN 1.9 billion as at the end of 2013).
The refinancing and repayment of the existing debt were central to the completion of the entire transaction. The advice provided by Greenberg Traurig also included changes in the debt structure of the Metelem group following its takeover by Cyfrowy Polsat, in respect of the intended repayment of the debt under the PIK Notes (more than USD 260 million).
“We are very happy to have worked for our long-term client, assisting in the creation of Poland’s largest media and telecommunication group. Our involvement in the takeover of Polkomtel by Cyfrowy Polsat was a natural consequence of our participation in Polkomtel’s acquisition in 2011, which was Poland’s largest leveraged buyout transaction. We are even more pleased that after nearly ten months of efforts, consisting of a range of extremely complex M&A and financing components, the project has been closed in line with the timetable and to the satisfaction of the client’s business expectations,” said Jarosław Grzesiak, Managing Partner of Greenberg Traurig’s Warsaw office.
Stephen Horvath (Shld-LON-CP)
Emma Menzies (Shld-LON-CP)
Gary Bellingham (Assoc-LON-CP)
Nicky Maan (Assoc-LON-CP)
Godric Shoesmith (Assoc-LON-CP)
Christopher Ives (LC-LON-CP)
Rafal Sienski (Partner-WAW-CP)
Andrzej Wysokinski (Partner-WAW-CP)
Pawel Piotrowski (Local Partner-WAW-CP)
Magdalena Bachleda-Ksiedzularz (Assoc-WAW-CP)
Paulina Kimla (Assoc-WAW-CP)
About Greenberg Traurig Maher LLP
Greenberg Traurig Maher LLP has established itself in London as a multidisciplinary law firm, with over 40 lawyers and growing. The London office provides partner-led advice to domestic and international clients on a range of matters across the legal spectrum. Lawyers at Greenberg Traurig Maher advise U.K. and multinational clients operating in many different sectors, including chemicals, pharmaceuticals, life sciences, energy, real estate, financial services, automotive, retail and communications. For additional information, please visit www.gtmlaw.com.