PARIS (Reuters) – Iliad ILD.PA plans to acquire Polish mobile operator Play PLY.WA in a 3.5 billion euros ($ 4.15 billion) deal, the French telecommunications group said on Monday, adding that it had reached an agreement to buy 40% of the company’s capital from key shareholders .
Iliad said in a statement that it would launch a public offering at 39 zlotys per share, a premium of 38.8% over the closing price of the Play share, valuing the Polish company at 2.2 billion euros. ($ 2.61 billion).
By adding Play’s 15 million subscribers, the combined group would benefit from a solid base of 41 million subscribers in France, Poland and Italy.
Iliad said the deal is in the best interests of its shareholders as it represents a unique opportunity to enter a major market that is still growing.
He said the deal would pay off in the first year and said the acquisition would be funded by debt and cash.
