Netia to Sell Stake in Mobile Co Play for EUR130 Million

MOSCOW -(Dow Jones)- Poland's fixed-line telephone operator Netia Holdings said Thursday it signed a letter of intent to sell its 23.4% stake in mobile operator Play for EUR130 million (US$192 million).

Netia said in a statement that Tollerton Investments and Icelandic investment fund Novator Telecom are interested in buying out the Play stake.

Under initial terms of the agreement the EUR130 million will be paid to Netia after the sale is closed.

Netia will receive additional payment is case of future changes in Play ownership within 12 months after the deal is closed, the statement said.

The EUR130 million for the 23.4% stake in Play includes a 63% premium above EUR79.7 million investment Netia made into Play, the statement said.

"The management board considers the price attractive," the company said in the statement.

The proceedings from the deal, when closed, would give the company enough financial means to implement its strategy based on developing broadband Internet services, the statement said.

-By Malgorzata Halaba, Dow Jones Newswires (+7 495) 974 8055; malgorzata.halaba@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 31st January 2008