Polsat buys out parent company

Cyfrowy Polsat SA, Poland’s biggest satellite television broadcaster, has agreed to buy Telewizja Polsat SA, its parent company which is also controlled by billionaire Zygmunt Solorz-Zak  , for 3.75 billion zloty ($1.3bn).

Cyfrowy will pay 2.6 billion zloty in cash and the rest in the form of 80 million new shares valued at 14.37 zloty each, the Warsaw-based company said in a regulatory statement.

Telewizja Polsat and TVN, controlled by TVN SA, are rivals for the top position among private television networks in Poland. When the deal closes in March next year the new entity will be the biggest Polish media company, based on sales of 2.4 billion zloty as of June 2010.

The deal is conditional on Cyfrowy, which recently reported 221.5 million zloty of net income for nine months ended September 30th, organising as much as 2.6 billion zloty of debt financing.

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