Poland's Agora expects positive outcome despite setback in Eurozet takeover (updated)
20/05/2022 13:56
(Adds quotes, background info)
GDANSK, May 20 (Reuters) - Polish media group Agora
AGOP.WA expects a delay of at least several months to its
planned takeover of Eurozet if the Polish competition watchdog
appeals a recent court OK, management board member Anna
Krynska-Godlewska said.
Agora, whose flagship product is the Gazeta Wyborcza daily
newspaper critical of the current Polish government, holds a 40%
stake in the Radio Zet owner and has been trying to buy the
remaining share from Czech-based SFS Ventures since 2019.
Poland's anti-monopoly watchdog (UOKiK) blocked the takeover
in early 2021 citing competition concerns, but critics said the
decision was politically motivated with the ruling Law and
Justice (PiS) party aiming to increase its influence on the
media.
A competition court in May then rejected the regulator's
arguments, but the verdict is subject to further appeal.
"We have correctly assessed the extensive evidence and the
competitive threat posed by this concentration," Tomasz
Chróstny, the head of UOKiK said in a statement, confirming that
he would appeal.
"We hope that in the second instance the court will agree
with our arguments," Chróstny added.
Agora's Krynska-Godlewska said UOKiK's expected appeal would
likely delay the possibility of the takeover by "several to a
dozen-odd months".
"We believe the (first instance) court put forth strong
arguments, so we expect a positive outcome," she added.
Agora is in talks with SFS Ventures to extend its call
option for the remaining shares, it said in a market filing on
Thursday.
"For us the most important thing is simply to extend the
call option deadline, to give us a realistic chance of taking
over this asset while we wait for the appeals court decision on
the matter," Krynska-Godlewska said.
(Reporting by Karol Badohal, Adrianna Ebert, Mateusz Rabiega;
editing by Jason Neely, Kirsten Donovan)
((karl.badohal@thomsonreuters.com; +48 58 769 65 97;))