freenet AG

M&A Activity • Feb 17, 2003

News Details

Ad-hoc | 17 February 2003 18:50

freenet.de AG english

freenet.de AG Signs Preliminary Agreement On Fixed-Line Business Takeover Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– freenet.de AG Signs Preliminary Agreement On Fixed-Line Business Takeover freenet.de Takes Over MC Fixed Line Business For 35 Million EUR, Adds Vertical Chain To Value Creation In The Access Business freenet.de AG / Hamburg – freenet.de AG, Germany’s second-biggest online service, and MobilCom AG have signed a preliminary contract agreeing to freenet.de’s takeover of MobilCom’s fixed-line business. The purchase price is EUR35m, and will be paid in four installments, due in 2003 and 2004. The agreement is subject to approval by the MobilCom supervisory board, the warrantors and the lending banks of MobilCom AG, which will be obtained shortly. The freenet.de AG supervisory board has already granted its approval. freenet.de’s future fixed-line division will comprise both the existing customer base and MobilCom’s entire network infrastructure: a nationwide high-speed fiberglass backbone, switching and dial-up technology for voice and data, as well as a large data center (>1000 m²). The fixed-line business also includes call-by-call telephony and MobilCom’s approx. 900,000 pre-selection customers, along with the company’s business customers for access products, Virtual Private Networks, data center services (server housing, hosting) and the 50-percent stake in the City Carrier KielNET. By taking over MobilCom’s fixed line, freenet.de AG wants to become one of Germany’s leading Internet telecommunications companies. freenet.de has no plans for capital measures or loans to realize the purchase price. The company has approx. EUR65m in liquid assets. Immediately following the takeover, freenet.de will begin making the necessary investments in the network to boost the network’s competitiveness and improve cost structures. freenet.de AG will execute a EUR25m investment program for the next 12 to 18 months. Once the investments have been made, freenet.de AG expects revenues of over EUR600m for the first full fiscal year following the takeover (2004). EBITDA is expected to exceed EUR75m and pre-tax earnings (EBT) to reach approx. EUR40m. end of ad-hoc-announcement (c)DGAP 17.02.2003 ——————————————————————————– WKN: 579200; ISIN: DE0005792006; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 171850 Feb 03