Warsaw (Puls Biznesu) – When the company gets bigger it will either be listed or sold. MCI plans to earn five times more than it invested.
Telecom Media, the distributor of multimedia solutions for mobile phones, is the newest investment of MCI. The private equity fund located in Wroclaw, south-western Poland, is going to pay PLN 2.918m (EUR 764,500) for the 25.08 percent stake.
“We may further engage in the project. We may spend up to PLN 5-10m”, Tomasz Czechowicz, MCI CEO said.
MCI is the second largest investor in Telecom Media. Another fund, BBI Capital, has invested about PLN 5m in the company and controls just over 51 percent of it. Funds raised in the transaction will be spent by Telecom Media for capital increase, foreign expansion (Ukraine, the Czech Republic), TV projects, mergers and acquisitions.
“In 2005, we want sales to grow to about PLN 17m”, Piotr Ciompa, the company’s CEO said.
Plans provide for a very dynamic growth.
“We expect Telecom Media to become Poland’s market leader in 2010, with PLN 100m of sales and PLN 10m of net income. The value of the company will exceed PLN 100m”, Tomasz Czechowicz said.
Both funds will try to sell the company when its situation improves.
“The time horizon for this investment amounts to 3-6 years”, MCI CEO said.
He expects Telecom Media to bring up to five-fold of the capital invested.
“We may withdraw form the investment in 2007 or 2008. But foreign companies are also penetrating the market, so a direct investor is a possible solution”, Dawid Sukacz, the member of BBI supervisory board said.
(PLN 1 = EUR 0.262)