Deutsche Telekom

Thursday, October 18th 2007 - 20:35 CEST - Comments: 0

D eutsche Telekom AG's Group company, T-Mobile Netherlands, has concluded a contract with France Télécom for the acquisition of the Dutch telecommunications provider, Orange Netherlands. The parties agreed on a purchase price of about EUR 1.3 billion on a debt/ cash free basis. The Works Council of Orange Netherlands was informed and involved in this process in accordance with Dutch law. The European Commission has already approved the acquisition of Orange Netherlands by Deutsche Telekom AG. Deutsche Telekom AG expects the deal to be closed on October 1, 2007.

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Deutsche Telekom & Orange Netherlands

In the next few years, Deutsche Telekom AG anticipates the business combination generating synergy effects totaling a net present value of approximately EUR 1.0 billion, with around half of this being generated in the first six years, in particular from network integration and reduced marketing expenses. René Obermann, Chairman of the Board of Management of Deutsche Telekom AG, comments on the transaction: "We are on the right track for implementing our 'focus, fix and grow' strategy. We have promised to focus on ‘Growing abroad with mobile communications' and are systematically doing so with the purchase of Orange Netherlands. This move clearly underlines our expansion efforts."

T-Mobile & Orange Netherlands

The joining of forces of T-Mobile and Orange Netherlands brings together two successful telecommunications companies with a total of 4.6 million mobile customers at the end of 2006. The combined number of customers of both companies currently stands at around 4.8 million. The acquisition strengthens Deutsche Telekom AG's position in the competitive Dutch market. T‑Mobile Netherlands is the third largest mobile communications provider in the Netherlands, with revenues of EUR 1.1 billion in the 2006 financial year. With 2.0 million customers at the end of 2006, Orange Netherlands is the fourth largest mobile communications operator in the Netherlands. The company generated overall revenues of around EUR 0.6 billion last year. EBITDA for financial year 2007 is expected to be in the order of EUR 120 million for the Orange Netherlands mobile business. Orange Netherlands additionally operates a broadband business, which had around 554,000 customers at the end of the 2006 financial year. The acquisition of Orange Netherlands has no significant effect on the proportion of Deutsche Telekom AG's net financial liabilities against its EBITDA, the ratio of which was about 2:1 for the 2006 financial year.

 

T-Mobile & Deutsche Telekom AG

Once the transaction has been concluded, T-Mobile Netherlands will drive forward the integration of the two companies at full pace in order to contribute to Deutsche Telekom AG's continued international growth.

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