Freenet Secures Deal to Buy Debitel
Germany's Freenet has finally agreed to buy rival telecoms service provider, Debitel for US$2.6 billion after fending off a rival bid which emerged recently from United Internet AG. Freenet, which merged with Mobilcom last year will buy Debitel from Permira Advisers - who will then take a 24.99% stake in the newly enlarged company. Permira Advisers is also advancing a US$207 million loan to Freenet as part of the buyout.
United Internet has recently made a takeover offer for Freenet - but this was conditional on the Debitel purchase being cancelled. The enlargement of the shareholder base also dilutes the stake built up by United Internet and Drillisch to below 20%.
"This transaction is a defining moment in the long-discussed
consolidation of the German telecoms market," commented freenet CEO Eckhard
Spoerr. "freenet has advocated consolidation for a long time and actively
explored various options. We are now acting decisively in the best interests
of our shareholders, customers and employees to be a driver in this
movement."
The debitel Group has operations in both Germany (approx. 93 percent of revenue; 13.2 million customers at 31 Dec 2007) and the Netherlands (approx. 7 percent of revenue, 0.85 million customers at 31 Dec 2007). Approx. 5.8 million of the group's German customers are post-paid or customers of other debitel brands such as the no-frills brand "Callmobile, while approx. 7.4 million are pre-paid." The debitel Group had 641 owned shops at the end of 2007.
In June 2004, Permira Advisers acquired Swisscom's 95% stake in debitel.
As a consequence of the transaction, freenet does not intend
to pay a dividend in 2008.
Posted to the site on 28th April 2008
