* Offer initially priced at up to 950 mln zlotys
* Price range expected to be 16.25-21.0 zlotys per share
* Low end of range would value re-listing at 734 mln zlotys
(Adds detail, quotes)
WARSAW, May 28 Demand for shares in a planned
re-listing by Poland's No.3 cable operator Multimedia Polska
has been low and the price could be at the bottom of
the indicated range if it goes ahead, three market sources told
Reuters on Wednesday.
Multimedia is seeking to return to the Warsaw bourse three
years after it de-listed. The planned offer was to have been the
largest so far this year in Poland and was initially priced at
up to 950 million zlotys ($311 million).
"The local demand was very low and foreign investors did not
flock either," one market source told Reuters. "If the deal goes
ahead, it will be at the minimum price."
Another of the sources said: "If it were sold cheaper, they
would seal the deal. But since everyone knows their history of
de-listing and then struggling to find a buyer, investors are
not that willing."
Neither the company nor the banks handling the offer were
immediately available for comment.
Multimedia was to set the offer price on Wednesday, planning
for it to come in the range of 16.25-21.0 zlotys per share. The
lower end of the range would value the re-listing at 734 million
The group, which controls 18 percent of the Polish cable
market, offered up to 49.2 percent of its existing shares,
sweetened with plans to hand out all of its annual profits as
dividends to shareholders.
The operator provides digital television, broadband,
fixed-line and mobile services to about 826,000 customers in
Poland. It is controlled by co-chairmen Tomek Ulatowski and Ygal
Ozechov, who de-listed the group in 2011.
The company had been looking for a strategic buyer, but the
search stumbled over price. Multimedia itself lost out on
acquisitions that could have lifted it to the top of a cable
market led by UPC, part of U.S. group Liberty Global.
Multimedia's revenue rose 2 percent last year to 699 million
zlotys, while net profit increased 44 percent to 71 million
($1 = 3.0551 Polish Zlotys)
(Reporting by Adrian Krajewski; Editing by David Goodman)