Ownership of Poland’s second-largest telecoms company, Warsaw Stock Exchange-listed Netia, could soon change hands. Three private-equity firms are interested in acquiring the firm, Reuters reported last week citing unnamed sources. Netia is valued at around zł.2.5 billion according to its share price.

According to the news agency, the three firms – Warsaw-based Innova Capital and two other funds, Advent International and Bridgepoint – will soon start due diligence on the telecom company.

Source: Netia

The news caused Netia’s share price to grow by 3.3 percent last Tuesday, its strongest intraday rise since November 2001. At close on Friday, the firm’s share price stood at zł.6.28.

Piotr Janik, an analyst at KBC Securities, said it is not a surprise that due diligence is being carried out on Netia, since a number of potential investors have shown an interest in the company over the course of the last year. The due diligence process should not take long, said Mr Janik. More details are expected to come to light towards the end of Q2.

If one of the private equity companies ends up buying Netia, it would likely want to purchase as close to 100 percent of the company as possible, restructure it and sell it on. “Private equity funds should offer a premium over current prices,” Mr Janik said.

Netia increased its market share last year by buying smaller competitor Dialog from copper miner KGHM and telecoms service provider Crowley Point Data.

Roberto Galea