Telekom Austria brings forward MobilTel takeover

2 Jun 2005

Telekom Austria yesterday announced that it has brought forward completion of its EUR1.6 billion acquisition of Bulgarian cellco MobilTel to July. The takeover, previously expected to be finalised in the fourth quarter, involves the purchase of a majority stake held by a consortium of Austrian investors. In November 2004 the Austrian telco announced that it had agreed exclusive rights to acquire 100% of MobilTel in the second half of 2005, following lengthy on/off negotiations. Telekom carried out due diligence in March in relation to its purchase and subsequently paid a call option fee of EUR80,000 following MobilTel meeting set financial performance criteria for fiscal 2004. The cellco’s net debt, EUR450 million at end-June 2004, will be assumed by Telekom Austria. MobilTel had 3.14 million subscribers by the end of March 2005.

Bulgaria, A1 Bulgaria (Mobiltel), A1 Telekom Austria Group