Ad hoc notification of Deutsche Telekom AG
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.