KGHM expects wide range of bids for Polish telco Dialog

23 Mar 2011

Copper giant KGHM Polska Miedz has sent out preliminary bid requests to a wide group of investors that may be interested in purchasing Polish fixed line telco Telefonia Dialog. According to Puls Biznesu, Netia, GTS, Mediatel, MNI, the Polish mobile operators, cable operators and investment funds are the most likely interested parties. KGHM has valued Dialog at PLN800 million (USD281.9 million), a price that may prove steep for potential buyers. The seller is hoping to close the transaction by the middle of the year.

According to TeleGeography’s GlobalComms Database Telefonia Dialog (formerly Telefonia Lokalna) was established in 1997 and is Poland’s second largest provider of facilities-based local access lines, with a market share of around 4.7% at the end of 2009. Dialog provides services mainly to the south-western part of Poland, although it also operates in several other large cities outside of this region. In total, Dialog’s own local network footprint covers a population of three million; the company supplements its own network by leasing lines in areas where it has not installed infrastructure.

Poland, Telefonia Dialog