Ongoing sale of Wirtualna Polska

According to the daily Rzeczpospolita, Wirtualna Polska, an internet portal belonging to Orange, the incumbent operator on the Polish telecommunications market, is being offered for sale. The operator is accepting binding offers for the portal until the end of September 2013. Private equity funds are considered frontrunners for the purchase. According to Rzeczpospolita, one of the main parties interested in the acquisition of the portal is Innova Capital, a private equity fund also said to be interested in O2, another internet portal operating on the Polish market. If it were to buy both, a new internet portal group would emerge on the Polish market, and it would have a higher number of page views than the current leader, Onet. Various prices are circulating in the press regarding the value of the sale of Wirtualna Polska. In 2012 the portal noted revenues of around PLN 180m. In the same period the portal’s EBITDA, according to company representatives, was equal to 20-25% of its 2012 revenues. Assuming that the value of the transaction does not exceed eight times EBITDA, the maximum value of the acquisition could be set at PLN 360m.