Mr. Solorz has said that he is still in talks with several international media companies regarding the selling of a minority stake in Polsat. He added that he expects the final deal to be signed only in 3 months time. CME spokesperson indicated that her company would not be interested in Polsat, because it considers only the project involving acquisition of a majority stakes in targeted companies.
Our view: On several past occasions Mr. Solorz has withdrawn from the plans to sell a stake in Polsat at the late stage of negotiations. The prospect for the Polsat transaction is further obscured by the fact that we do not know the exact reason why Mr. Solorz has decided to sell the stake now. The low price for the stake, at some 50% to TVN current market valuation reported by yesterday’s ‘Rzeczpospolita’ daily, might point to some kind of financial distress with regard to Mr. Solorz bunch of businesses (Polsat, Elektrim, Invest Bank). Based on that, we would expect the transaction on selling 25% stake in Polsat to strategic investor(the claim reiterated by ‘Rzeczpospolita’ today), and another 25% stake being listed on the stock exchange, to be concluded relatively soon. Therefore, we do not expect TVN share price to rebound today, after 3.6% drop yesterday.