17.03.2016
freenet AG DE000A0Z2ZZ5
DGAP-News: freenet AG: freenet AG acquires 23.83 per cent of Sunrise Communications Group AG
DGAP-News: freenet AG / Key word(s): Investment
freenet AG: freenet AG acquires 23.83 per cent of Sunrise Communications
Group AG
17.03.2016 / 22:53
The issuer is solely responsible for the content of this announcement.
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freenet AG acquires 23.83 per cent of Sunrise Communications Group AG
- freenet AG is acquiring a stake of 23.83 per cent in Sunrise
Communications Group AG with the option of further up to 0.73 per cent
- The shares will be acquired at a price of 72.95 CHF and will be
entitled to dividends immediately. The transaction has a volume of
around 714 million euros
- The investment will be consolidated at equity, as a result in 2016
freenet AG's EBITDA will increase by around 10 million euros and free
cash flow* will increase by around 30 million euros
- The freenet AG Executive Board's dividend proposal of 1.55 euros
(previous year: 1.50 euros) for the financial year 2015 and 1.60 euros
for the financial year 2016 remain unchanged
Büdelsdorf, 17 March 2016 - Today, freenet AG [ISIN DE000A0Z2ZZ5] signed a
contract for the acquisition of 10,721,395 ordinary shares in Sunrise
Communications Group AG, Zurich, Switzerland. This constitutes a stake of
23.83 per cent in Sunrise Communications Group AG. Next month, furthermore,
freenet AG is going to acquire a further stake of up to 330,183 shares, or
0.73 per cent of the share capital, in Sunrise Communications Group AG
under the same conditions.
The price of acquiring this 23.83% participating interest is around 714
million euros or 72.95 CHF per share in Sunrise Communications Group AG.
The dividend for the financial year 2015 will be due to freenet AG. The
dividend of 3.00 CHF per no-par-value share with entitlement to dividends
that was proposed by the company's board of directors will be the subject
of a resolution at Sunrise Communications Group AG's annual general meeting
on 15 April 2016.
The transaction is being financed with borrowed capital. The financing
structure is a bridge loan provided by a bank consortium with a term of
three years and an interest rate at EURIBOR level plus a margin of 2.1 per
cent. The company intends to use favourable market conditions for
refinancing purposes. It is intended that freenet AG's CEO, Christoph
Vilanek, as well as the company's CFO, Joachim Preisig, are to be
represented on Sunrise Communications Group AG's board of directors. The
transaction is expected to be completed soon. freenet AG's board of
management has decided to support the proposals that the Sunrise
Communications Group AG board of directors will be submitting to the
company's annual general meeting on 15 April 2016.
Sunrise is the largest private telecommunications provider in Switzerland
and has more than 3 million customers in the mobile communications,
landline, internet and digital television segments.
"We have been watching the development of Sunrise Communications AG very
closely for some time now. We understand their business model and, with
regard to cash orientation and the financial profile, we can see strong
parallels with our profile on the capital market. The acquisition of the
shares from CVC Capital Partners is a great opportunity for freenet that we
have been delighted to grasp," explains Christoph Vilanek, CEO of freenet
AG.
The consolidation of the shares will lead proportionally in the financial
year 2016 to additional EBITDA of around 10 million euros, as a result of
which the forecast is being increased to slightly over 410 million euros
(previously: slightly over 400 million euros). At the same time, freenet's
free cash flow will increase to approximately 330 million euros
(previously: around 300 million euros). The targets for the development of
the performance indicators Group revenue, postpaid ARPU and customer
ownership in the financial year 2016 remain unchanged: The company is
remaining true to its expectation for an increase in Group revenue, a
stabilisation of postpaid ARPU at the level of 2015 and a slight increase
in customer numbers in the customer ownership area compared to the
financial year 2015.
Despite the acquisition of the shares in Sunrise Communications Group AG,
the Executive Board is confirming its current financing strategy and is
maintaining its assumption of a target corridor of 1.0 to 2.5 as debt
factor, interest cover (ratio of EBITDA to the interest balance) of at
least 5, a liquidity reserve of around 100 million euros and an equity
ratio of more than 50 per cent.
* Free cash flow is defined as cash flow from current operating activities,
less investments in property, plant and equipment and intangible assets,
plus the cash inflows from disposals of intangible assets and property,
plant and equipment.
Investor Relations contact:
freenet Aktiengesellschaft
Investor Relations
Deelbögenkamp 4c
22297 Hamburg
Germany
Phone: +49 (0) 40 / 513 06 778
Fax: +49 (0) 40 / 513 06 970
Email: [email protected]
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17.03.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: freenet AG
Hollerstraße 126
24782 Büdelsdorf
Germany
Phone: +49 (0)40 51306-778
Fax: +49 (0)40 51306-970
E-mail: [email protected]
Internet: www.freenet-group.de
ISIN: DE000A0Z2ZZ5, DE000A1KQXU0
WKN: A0Z2ZZ , A1KQXU
Indices: TecDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart; Terminbörse EUREX
End of News DGAP News Service
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446721 17.03.2016
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