Supporting MEIF5’s acquisition of cable/fibre operator INEA

The problem

• Macquarie European Infrastructure Fund 5 (MEIF5) decided to participate in the competitive process for the acquisition of INEA, a cable and fibre operator active in the Wielkopolska region of Poland
• Analysys Mason was engaged to carry out commercial due diligence of MEIF5’s business plan as well as technical due diligence

The solution

• We supported MEIF5 on the development of an acquisition business plan
• Our team developed market projections for the fixed voice, broadband and pay-TV markets for Poland and, more specifically, for Wielkopolska in order to size the current and future addressable demand
• We identified the key market risks and opportunities, taking a view on how (and to what extent) these would affect the business
• Our review of the business plan was also informed by analysis of documentation from the virtual data room and interviews with INEA’s management
• The due diligence included a detailed review of the regulatory framework and the future expansion of the fibre network into new areas
• The capex for this additional roll-out was assessed through our detailed technical due diligence, which assessed both current assets and future investments needed to maintain and expand the network

The result

• MEIF5 was selected as the winning bidder and successfully closed the transaction in early 2018
• During the re-financing process which followed, Analysys Mason provided further support to INEA and MEIF5 as a commercial and technical adviser

Figure: INEA's area of operations in Poland