Vodafone Increases Stake in Polish Network

Vodafone has agreed to acquire an additional 4.8% stake in Poland based operator, Polkomtel from TDC for a total cash consideration of €176 million (US$212 million) plus accrued interest at closing.

The acquisition will increase Vodafone's stake in Polkomtel from 19.6% to 24.4%, enhancing its exposure to the attractive Polish market. Vodafone has, along with the other shareholders, elected to exercise its pre-emptive rights, pro rata to its existing shareholding of 19.6%, over TDC's shareholding in Polkomtel, which arose following the change of control of TDC in February 2006.

The company originally confirmed that it was in talks regarding the stake in early August. The sale of TDC's stake has been tied up in a Vienna arbitration court since 2006 when Vodafone filed a lawsuit to block the stake's sale to Polkomtel's other shareholders, the Polish state-owned companies KGHM (19.6%), PSE (17.6%), Weglokoks (4%) and PKN Orlen (19.6%).

Vodafone expects the transaction to close in the fourth quarter of the calendar year 2008.

Posted to the site on 29th October 2008