- Acquisition in line with DT Group strategy to become the leading integrated pan-European telco operator
- Obtaining full ownership of the Slovakian quad-play leader
- Transaction further optimizes DT Group portfolio
Deutsche Telekom is acquiring the 49-percent stake of Slovak Telekom that it does not already own for a purchase price of EUR 900 million, corresponding to a multiple of 3.8x EV/EBITDA. The shares are currently owned by the National Property Fund of the Slovak Republic.
"As the only operator in Slovakia with quad-play capabilities, Slovak Telekom is a highly attractive asset," commented Claudia Nemat, Board Member for Europe and Technology at Deutsche Telekom. "It is the market leader in fixed line, fixed broadband and pay-TV, as well as the second largest mobile player in Slovakia. Furthermore, it is the second of our subsidiaries to already offer an all-IP network, and with the recent introduction of its Magenta One converged fixed mobile services continues to be at the forefront of innovation within our Group."
The acquisition of the remaining shares allows for simplification of the capital and governance structure of Slovak Telekom. In addition, the transaction eliminates the cash leakage from dividend payouts to minority shareholders going forward.
Slovak Telekom is already a fully consolidated subsidiary of Deutsche Telekom. The transaction has no impact on Group revenue and EBITDA. However, the acquisition of the remaining shares leads to an increase in earnings per share attributable to the shareholders of Deutsche Telekom. Under the terms of the agreement, €100m of the purchase price will be set aside in an escrow account for a specific time period.
The transaction is not subject to regulatory approvals and is expected to be completed in the coming weeks.
Morgan Stanley and Clifford Chance acted as advisors to Deutsche Telekom.
About Deutsche Telekom
Deutsche Telekom is one of the world’s leading integrated telecommunications companies with around 151 million mobile customers, 30 million fixed-network lines and more than 17 million broadband lines (as of December 31, 2014). The Group provides fixed network, mobile communications, Internet and IPTV products and services for consumers and ICT solutions for business customers and corporate customers. Deutsche Telekom is present in more than 50 countries and has approximately 228,000 employees worldwide. The Group generated revenues of EUR 62.7 billion in the 2014 financial year – more than 60 percent of it outside Germany.