Press release Tele2 Group Jan 26 2007, 8:00 AM CET
TELE2 SELLS TELE2 BENELUX TO VERSATEL AND COMMITS TO SUBSCRIBE FOR UP TO EUR 255 MILLION VERSATEL EQUITY ISSUE
Stockholm - Further to the joint announcement by Tele2 AB (Tele2) and Versatel Telecom International N.V. (Versatel) by press release dated 16 August 2006, Tele2 announces that it agreed with Versatel on the sale and transfer of all shares in the capital of Tele2 Netherlands B.V. and Tele2 Belgium N.V for the aggregate purchase price of EUR 200,000,000 (on a cash and debt free basis and subject to certain adjustments). Tele2 and Versatel have obtained independent financial advice in determining the value of Tele2 Netherlands B.V. and Tele2 Belgium N.V.
Versatel intends to issue new shares (the Offering) whereby eligible Versatel shareholders are entitled to participate pro rata to their existing shareholdings, for purposes of financing the acquisition of Tele2 Netherlands B.V. and Tele2 Belgium N.V. Tele2 Finance B.V. (Tele2 Finance), a wholly owned subsidiary of Tele2 holding 80,3% of all Versatel shares presently issued and all of Versatel's convertible bonds due 2011, committed to underwrite the complete Offering generating gross proceeds for Versatel of EUR 255 million.
Today, Versatel convenes an extraordinary shareholders meeting to be held on 12 February 2007, inter alia, for purposes of discussing and voting on proposals to approve the acquisition and the Offering. Further details about the acquisition of Tele2 Netherlands B.V. and Tele2 Belgium N.V and the proposed Offering are provided as part of and together with the convocation of the extraordinary shareholders meeting of Versatel and will be made available, subject to certain restrictions, on Versatel's website www.versatel.com.
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Tele2 is Europe's leading alternative telecom operator. Tele2's mission is to provide cheap and simple telecoms for everyone in Europe. Tele2 always strives to offer the market's best prices. We have 31 million customers in 22 countries. Tele2 offers fixed and mobile telephony, broadband, data network services, cable TV and content services. Ever since Jan Stenbeck founded the company in 1993, it has been a tough challenger to the former government monopolies. Tele2 has been listed on Stockholmsbörsen since 1996. In 2005 we had operating revenue of SEK 50 billion and reported a profit (EBITDA) of SEK 6.6 billion.