Deutsche Telekom AG — M&A Activity 2003

Sep 14, 2003

News Details

Ad-hoc | 14 September 2003 21:41

Deutsche Telekom AG english

ad hoc announcement of Deutsche Telekom AG Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Bonn, September 14, 2003 Agreement in principle over Deutsche Telekom’s PTC offer Deutsche Telekom, Vivendi Universal, Elektrim (in agreement with the bondholder’s representative on the Management Board) and Ymer Finance today reached an agreement in principle on Deutsche Telekom’s offer to increase its shareholding in Telefonya Cyfrowa Sp.zo.o (PTC) from 49 percent to 100 percent for a revised total cash offer of EUR 1.1 billion. All the parties have agreed to make their best efforts, in good faith, to reach a definitive agreement not later than September 19, 2003. The purchase price will be allocated among the shareholders of Elektrim Telekomunikacja (ET) as follows: Vivendi Universal EUR 691 million, Elektrim EUR 400 million and EUR 9 million for Ymer. Payment of the proceeds by Deutsche Telekom will be made upon closing which should occur during the first week of January 2004. Raising its stake in PTC to 100 percent means Deutsche Telekom will be able to fully consolidate PTC from 2004. The Polish mobile network operator is profitable both before and after taxes. In 2002, with revenue of around EUR1.3 billion, PTC achieved EBITDA of EUR 535 million and generated profit after taxes of around EUR 90 million. The increase of the holding to 100 percent will further improve Deutsche Telekom’s Goup EBITDA. It will not be earnings dilutive. Deutsche Telekom’s debt reduction targets remain unchanged. end of ad-hoc-announcement (c)DGAP 14.09.2003 ——————————————————————————– WKN: 555750; ISIN: DE0005557508; Index: DAX, EURO STOXX 50 Listed: Amtlicher Markt in Berlin-Bremen, Düsseldorf, Frankfurt (Prime Standard), Hamburg, Hannover, München und Stuttgart; EUREX; London; Amsterdam; NASDAQ Europe; Virtex; New York (ADR); Tokio 142141 Sep 03