3U Holding AG — AGM Information 2006

Dec 7, 2006

News Details

Corporate | 7 December 2006 14:28

3U TELECOM AG: Extraordinary general meeting of 3U TELECOM AG on 15 January 2007

Corporate News transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— 3U TELECOM AG plans strategic reorientation – Focus on equity holding business Marburg, 7 December 2006 – 3U TELECOM AG is inviting its shareholders to an extraordinary general meeting on 15 January 2007. The Board of Management and Supervisory Board of 3U TELECOM AG adopted a resolution on 24 November 2006 on the repositioning of 3U TELECOM AG as a management and holding company. Within the framework of the extraordinary general meeting it is intended to adopt approval resolutions on the spin-off and transfer of the telecommunications services division to a new wholly-owned subsidiary, on the conclusion of a control and profit and loss agreement with the new subsidiary, and on the corresponding changes in the articles of association. With the swift implementation of the repositioning the Board of Management of 3U TELECOM AG is reacting to the increasingly difficult conditions on the telecommunications market, which will restrict the potential for growth and an increase in earnings for 3U TELECOM AG in the medium term. The deterioration in the market environment as a consequence of the ongoing price war in the fields of fixed-line telephony and broadband/IP will lead to a further decrease in margins. The focus in the fixed-line telephony segment on the areas of call-by-call and wholesale has secured the profitability in the core business for the time being. The management assumes, however, that the market environment will continue to be characterised by weak growth and earnings, associated with the risk of having to contend with a further decrease in turnover and earnings. The overriding goal of 3U TELECOM AG is an increase in shareholder value. In the opinion of the Board of Management, in the medium term the traditional business area is not suited to generating the returns necessary for an increase in the share price. For this reason 3U TELECOM AG intends to develop new potential for growth and earnings through the purchase of shareholdings. ‘In line with the findings acquired within the framework of the restructuring, namely that further investments in the telecommunications market do not make sense for the company, this is a consistent development. We will deploy our liquid funds in the interests of our shareholders for acquisitions in the holding business with significantly better opportunities for earnings. In this respect the Board of Management will take suitable consideration of the risks of repositioning,’ explains Oliver Zimmermann, chief financial officer of 3U TELECOM AG. ‘We are convinced that there are major growth rates to be attained in the planned equity holding business, and that given our funding situation we have the necessary room for manoeuvre to be successful in this business,’ adds Zimmermann. 3U TELECOM AG plans to place its focus on shareholdings in the fields of innovative technologies and restructuring. CFO Oliver Zimmermann has many years experience in financial restructuring and, through his activity in the field of Restructuring/Corporate Finance at Roland Berger Strategy Consultants, an excellent network of contacts. The Board of Management assumes that the shareholders will adopt the proposals put by the company’s administration on the repositioning of the company with the necessary three-quarters majority at the extraordinary general meeting, and that on this basis the shareholder value may be increased on a sustainable basis. Contact person: 3U TELECOM AG Kirsten Götsche Tel.: 06421 999-1200 Fax: 06421 999-1998 boerse@3u.net (c)DGAP 07.12.2006 ————————————————————————— Language: English Issuer: 3U TELECOM AG Neue Kasseler Str. 62 F 35039 Marburg Deutschland Phone: +49 (0)6421/999-0 Fax: +49 (0)6421/999-1111 E-mail: boerse@uuu.de WWW: boerse@uuu.de ISIN: DE0005167902 WKN: 516790 Indices: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Stuttgart, München, Hamburg, Düsseldorf End of News DGAP News-Service —————————————————————————