EUR 150.00 For Business Accounts Only

Netia: Waiting for delisting

We keep Netia at a BUY despite cutting our FV to PLN 5.5 (from PLN 5.54) as we marginally trimmed our 19/20/21E EBITDA owing to higher than expected costs (inevitable salary pressure, energy costs). Netia’s story is unchanged for almost 18 months. After acquisition of a 66% stake by CPS at PLN 5.77/sh, the market and existing minority shareholders are waiting to see if CPS will take the last step and announce a delisting tender offer, ideally at an unchanged PLN 5.77/sh. However, 12 months since Cyfrowy’s last tender have passed and according to law 3M/6M average prices would be more applicable for a public delisting tender. This may be a reason why NET’s share price is visibly below the CPS deal price. CPS’ decision to announce a hefty 3Y dividend program may suggest CPS is not very determined to delist NET. In our view, NET’s delisting decision will not happen until the 5G C-band auction is resolved (2H20). CPS plans to present an update on the CPS-NET initially planned PLN 800m synergies until 2022.