Telekom Austria AG — M&A Activity 2002

Jun 7, 2002

News Details

Ad-hoc | 7 June 2002 06:56

Telekom Austria AG english

ÖIAG and Telekom Austria agree with Telecom Italia … (Part 1) Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Part 1 of the ad hoc announcement of Telekom Austria AG ÖIAG and Telekom Austria agree with Telecom Italia on purchase of stake in Mobilkom Austria and Telecom Italia’s exit from Telekom Austria Vienna, June 7, 2002: ÖIAG (Österreichische Industrie Holding AG) and Telekom Austria (VSE:TKA; NYSE: TKA) announced today the following agreements with Telecom Italia: Telekom Austria acquires TIM’s 25% stake in Mobilkom Austria for a total consideration of EUR 716 million, out of which EUR 26 million represent the dividend for the year 2001. Telecom Italia and ÖIAG adjust the existing shareholder agreement to allow for a gradual and co-ordinated exit of Telecom Italia and further privatisation steps of ÖIAG Acquisition of Mobilkom Austria Telekom Austria will acquire TIM’s 25% stake in Mobilkom Austria through the acquisition of 100% of Autel. Autel is a holding company wholly owned by TIM whose only asset is a 25% stake in Mobilkom Austria. The purchase price for Autel consists of EUR 690 million in cash and EUR 26 million which TIM recieves as dividend for the year 2001. The transaction gives Telekom Austria full control of Mobilkom Austria and thus full access to its strong cash flows. Furthermore, the 100% ownership of Mobilkom Austria increases Telekom Austria’s future strategic flexibility. The acquisition does not require clearance by the relevant antitrust authorities and is expected to close before the end of June 2002. To reflect the importance of Mobilkom Austria and its status as a fully integrated part of Telekom Austria Group, Boris Nemsic will be appointed a member of Telekom Austria’s Management Board alongside Heinz Sundt, Stefano Colombo and Rudolf Fischer. Mr. Nemsic is responsible for the Group’s wireless business and he will retain his current position as CEO of Mobilkom Austria. End of part 1, part 2 to follow end of ad-hoc-announcement (c)DGAP 07.06.2002 ——————————————————————————– WKN: 072000; ISIN: AT0000720008; Index: ATX Listed: Amtlicher Handel in Wien; Freiverkehr in Berlin, Düsseldorf, Frankfurt, München, Stuttgart 070656 Jun 02