Poland’s second largest cellco by subscribers P4, which trades under the Play brand, has signed an agreement granting it an option to acquire MVNO partner Virgin Mobile Polska in 2020. The deal was signed with Virgin Mobile Polska’s main shareholders – Dirlango Trading and Investments and Virgin Mobile Central & Eastern Europe (VMCEE) – and other investors, including Delta Partners, Lukasz Wejchert and Kai-Uwe Ricke. It gives P4 a call option to acquire all shares in the MVNO during 2020 at an agreed valuation methodology based on Virgin’s one-time annual revenue, adjusted by certain elements. The agreement also guarantees P4 minimum revenues of PLN84 million (USD24 million) from the resale arrangement with Virgin for the years 2018-2021.
According to TeleGeography’s GlobalComms Database, Virgin Mobile Polska had 412,000 subscribers at the end of 2016, rising to an estimated 470,000 as of end-September 2017.