Telekom Austria Group acquires fixed-line operators Atlant Telecom and TeleSet in Belarus
Nov 30, 2016
Vienna, 30 November 2016
The Telekom Austria Group (VSE: TKA, OTC US: TKAGY) announces that it has agreed to acquire 100% of the shares in the Belarusian operators Atlant Telecom and its subsidiary TeleSet. The sellers are the private equity firm ZUBR Capital as well as the European Bank for Reconstruction and Development (EBRD).
Atlant Telecom and TeleSet are the leading privately owned fixed-line operators in Belarus offering fixed-line broadband, IPTV and cable TV, as well as a video and audio library. As of year-end 2015, Atlant Telecom and TeleSet had approximately 125,700 fixed broadband and 46,000 cable TV customers.
In 2015, Atlant Telecom and TeleSet generated revenues and an EBITDA of approximately EUR 16 mn and EUR 4 mn respectively.
The acquisition of Atlant Telecom and TeleSet is a further step in Telekom Austria Group's convergence strategy. It allows Telekom Austria Group to develop its Belarusian subsidiary velcom from a mobile-only player into a fully converged operator.
Telekom Austria Group will finance the transaction via existing cash flow; the closing is expected in the next days.
**Disclaimer for forward-looking statements: ** This document contains forward-looking statements. These forward-looking statements are usually accompanied by words such as "believe", "intend", "anticipate", "plan", "expect" and similar expressions. Actual events may differ materially from those anticipated in these forward-looking statements as a result of a number of factors. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement. Neither Telekom Austria nor any other person accepts any liability for any such forward-looking statements. Telekom Austria will not update these forward-looking statements, whether due to changed factual circumstances, changes in assumptions or expectations. This report does not constitute a recommendation or invitation to purchase or sell securities of Telekom Austria.
Stay up to date with the latest industry developments: sign up to receive TelecomTV's top news and videos plus exclusive subscriber-only content direct to your inbox – including our daily news briefing and weekly wrap.