Telekom
Austria Acquires Call Option for the Purchase of Mobiltel
(Ad-hoc)
Vienna
- December 14, 2004
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.
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: °ßTelekom 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.
Please find below additional information
on Bulgaria and on Mobiltel.
A conference call will be held today in the afternoon. Please
find full details below. If you wish to participate please
call the conference centre approximately 10 minutes prior
to conference time and quote °ßTelekom Austria°®.
It will simultaneously be webcast on Telekom Austria°¶s
website. A replay of the conference call will be available
until xxx.
Time: 3:30 p.m. (Vienna)/2:30 p.m. (London)/9:30 a.m. (New
York)
Dial-in number: xxx
Replay number: xxx
