Mr. Solorz has reached an initial agreement with Bertelsmann on selling a 25% stake in Polsat for approximately PLN 1 bn, and plans listing of newly issued Polsat shares, which would represent 20% of the total, according to ‘Gazeta’ Satureday’s edition. Polsat representatives have declined to comment on the report.
Our view:
The news on Mr. Solorz selling a minority stake in Polsat is almost exactly the same as the one brought by ‘Rzeczpospolita’ daily a few months ago. Therefore, we think that the prospect of potential strengthening in Polsat marketing and programming is already factored in TVN price. We reiterate our Hold rating for TVN.