Liberty Global announced this week that it has reached a definitive agreement to sell 100% of its Polish operations to Play, the Polish mobile subsidiary of iliad SA.
As of June 30, 2021, our networks in Poland covered 3.7 million households and served 1.5 million customers subscribed to 1.3 million broadband services, 1.4 million video services and over 600,000 telephony services . Liberty Global has agreed to sell UPC Poland for a total enterprise value of PLN 7.0 billion ($ 1.8 billion) subject to customary debt and working capital adjustments upon completion.
Iliad SA is the parent company of the iliad Group, which operates under the Free in France, iliad in Italy and Play in Poland banners. Play is a consumer-oriented mobile network operator in Poland with over 15 million subscribers. It provides mobile voice, messaging, data and video services to consumers and businesses (especially SMEs) on a contract and prepaid basis under the umbrella brand Play. Its modern and economical 4G LTE / 5G telecommunications network covers 99% of the Polish population.
The proceeds of the sale (net of debt repayment of the UPC banking group) are expected to be used for general corporate purposes, which may include reinvestment in our business and support for the large buyout commitment of multi-year actions of the company.
Along with the transaction, Liberty Global has agreed to provide Play with certain transition services for a period of up to four years. These services will mainly include functions related to networks and information technology. Annual fees will depend on the actual level of services required by Play.