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NETGEM

M&A Activity Apr 9, 2013

1547_iss_2013-04-09_07e351bb-7de8-459f-bdac-a03bdaffb9f5.pdf

M&A Activity

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First-Quarter 2013 Revenue

Reopened Tender Offer on Videofutur

Neuilly-sur-Seine, 9 April 2013

Revenue and activity

For the first quarter ending 31 March 2013, Netgem's consolidated revenue amounted to € 16.3 million, with international revenue up 34%.

In €M, IFRS data Q1 2013 Q1 2012 Change
Revenue 16.3 18.4 -12%
France 4.2 9.4 -55%
International 12.1 9.0 +34%

Financial situation and results

The Group continues to grow profitably and has a high investment capacity. Netgem's Board of Directors will propose to shareholders, at their annual meeting on 27 June 2013, to raise the dividend to € 0.14 per share (+8% as compared to the dividend on 2011 results).

Result of the tender offer on Videofutur

After the initial tender offer launched on Videofutur's shares and convertible bonds, Netgem owns 92.6% of the outstanding shares and 93.6% of the share capital post conversion of the convertible bonds.

In payment for the shares and convertibles bonds tendered to the offer, Netgem has issued 3,660,585 new shares, representing 9.75% of its existing share capital, and will settle € 4.2 million in cash. As a result, the share capital of Netgem now consists of 41,194,596 shares.

Due to the success met during the initial offer period, the Autorité des marchés financiers has announced the reopening of the tender offer, from 10 to 23 April 2013 inclusive.

Furthermore, as indicated in the offer document filed by Netgem (section 2.16.2 "Régime fiscal de l'OPE subsidiaire"), Netgem filed on February 8, 2013 an application for an advance ruling of the French Tax Administration seeking in particular confirmation that (i) individuals who tender their shares and / or their convertible bonds to the exchange offer and (ii) legal persons who tender their shares to the exchange offer, can benefit from tax deferral under sections 38-7 and 150-0 B of the French Tax Code in respect of capital gains as part of this exchange.

The French Tax Administration has confirmed the benefit of the tax deferral.

Thus, the contribution to the public exchange offer of their shares and / or convertible bonds by individuals and / or legal persons under the conditions referred to above will not generate, by the sole fact of the exchange, any immediate taxation of capital gains.

Calendar of financial communication

  • Result of the reopened tender offer on Videofutur: from 2 May 2013
  • Annual Shareholder's meeting: 27 June 2013

About Netgem

Netgem provides Connected Home Entertainment Solutions to Multiservice Operators to help them strengthen their end-customer relationship and drive revenue growth. Based upon Netgem's hardware and software technologies, operators are able to develop innovative convergent services and a unique broadcast TV experience, enriched by the power of Internet. Netgem is present in more than fifteen countries around the world with an install base of more than 4 million active households. Netgem is listed on Compartment C of NYSE Euronext Paris (ISIN : FR0004154060, Reuters : ETGM.PA, Bloomberg : NTG FP)

Website : www.netgem.com Twitter http://www.twitter.com/netgem/

Investor contact : Charles-Henri Dutray, CFO +33 (0) 1 55 62 55 62

[email protected]

Press contact : Beatriz Ledesma, Netgem Communications +33 (0) 6 25 69 22 44

[email protected]

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