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Telekom Austria Acquires Call Option for the Purchase of Mobiltel
(Ad-hoc)
VIENNA, Austria, December 17 /PRNewswire-FirstCall/ -- Telekom Austria (VSE:
TKA , NYSE: TKA) announced that it has acquired a call option to purchase
Mobiltel AD, the leading Bulgarian wireless operator. The call option gives
Telekom Austria the unilateral and irrevocable right to purchase 100% of the
share capital of Mobiltel AD for a total enterprise value of up to EUR 1,600
million in late 2005. "We are delighted to have secured the right to acquire
Mobiltel, which we view as a quality asset in a highly attractive market. The
terms of the transaction underline Telekom Austria's prudent growth strategy in
South Eastern Europe and perfectly match the criteria which we have
communicated for our expansion policy" said Heinz Sundt, CEO of Telekom
Austria.
The call option is priced at up to EUR 80 million which would be offset against
the purchase price. The call option is payable in 1Q 05 and is exercisable in
3Q 05.
Up to EUR 150 million of the purchase price is contingent upon Mobiltel
achieving certain operating and financial performance criteria in 2005 and will
be payable in 2Q 06. Boris Nemsic, COO Wireless Telekom Austria and CEO
mobilkom austria, will be admitted as a non-voting observer to management and
supervisory board meetings of Mobiltel AD. "This process will allow for regular
business updates and assist us in our decision on exercising the call option,"
explained Boris Nemsic.
If the call option is exercised, Telekom Austria intends to fund the
acquisition mainly from its cash flow and in part through the issuance of debt.
Stefano Colombo, CFO of Telekom Austria reiterates: "Telekom Austria does not
intend to raise equity in order to finance the potential acquisition and will
maintain its current share buyback programme."
As of 30 June 2004, Mobiltel had approximately 2.75 million subscribers, making
it the largest mobile communications operator in Bulgaria with a subscriber
market share of approximately 67%. For the 12 months ended 30 June 2004,
Mobiltel had proforma revenues and EBITDA of approximately EUR 455 million and
EUR 290 million, respectively. Mobiltel is owned by a consortium of Austrian
and international financial investors.
With total managed revenues of EUR 3.9 billion and 13,900 employees in 2003
Telekom Austria is the largest telecommunications company in Austria and also
one of the leading corporations in this country. Telekom Austria AG has been
listed on both the Vienna and New York stock exchanges since November 2000.
Lehman Brothers and Raiffeisen Investment AG are advising Telekom Austria on
this transaction.
DATASOURCE: Telekom Austria
CONTACT: Martin Bredl, Head of Corporate Communications, Tel:
+43-(0)59-059-1-11001, E-Mail: . Hans
Fruhmann, Head of Investor Relations, Tel:
+43-(0)59059-1-20917, E-Mail: