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A consortium comprising some of the existing Austrian shareholders
of Mobiltel Holding GmbH and seven private equity investors,
yesterday signed definitive documentation regarding the acquisition
of Bulgarian mobile operator MobilTel EAD for the total consideration
of €1.2 billion in cash. The new investors are being
led by ABN AMRO Capital, Citigroup Investments Inc., Communications
Venture Partners Limited. The consortium also comprises Sandler
Capital Management, Innova Capital, Global Finance and 3TS
Venture Partners.
The offer was placed through BidCo AD, the Bulgarian bidding
vehicle of the consortium and is financed through €450
million in contributed equity, €650 million in acquisition
debt and MobilTel's estimated net cash balance of €100
million at closing.
The consortium secured a €450 million five-year syndicated
loan facility and a €200 million 365-day term facility
for the acquisition. The credit facilities have been lead-arranged
jointly by ABN AMRO Bank N.V., Citibank N.A. and ING Bank
N.V. and represent Bulgaria's largest syndicated corporate
euro loan. The facility was well received in the market, with
demand generated during syndication in excess of €600
million. The 365-day term facility will be refinanced later
this year through a Eurobond marking Bulgaria's inaugural
corporate bond issue.
The acquisition represents the largest ever leveraged-buy-out
("LBO") in Central and Eastern Europe and the largest
ever Bulgarian bank market financing.
"This is a landmark transaction in many ways. The combination
of the ongoing commitment of existing shareholders, the new
investment of leading private equity funds and the ability
of the Company to attract substantial funding from leading
multinational banks is testimony not only to the quality of
MobilTel and its future prospects but also to the maturing
of the Bulgarian economy" said Chairman of MobilTel EAD
Herbert Cordt on behalf of the consortium.
We are extremely pleased with Bulgaria's ability to attract
first class international capital in one of the technologically
most advanced industry sectors of our country. This has been
facilitated by the continuing economic progress and political
stability of Bulgaria", said Milen Veltchev, Minister
of Finance of the Republic of Bulgaria.
MobilTel is the largest mobile operator in Bulgaria and the
market leader. The company owns a fully rolled-out GSM network
and offers extensive wireless services to more than 2.7 million
customers. For the year 2003, MobilTel reported revenues of
€432 million and an EBITDA of €272 million, with
a market penetration of 44%.
Citigroup is acting as exclusive financial advisor to Mobiltel
Holding GmbH.
Wilhelm Schulz
Citigroup
+44 207 986 7550
+44 7798 750068
Max Hohenberg
CNC - Communications & Network Consulting AG
+44 207 557 9980
Dr. Michael Fink
PR Advisory
+43 664 3000 145
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