Telekom Austria says that its mobile subsidiary, mobilkom austria has purchased Western Wireless International's 19% interest in the Croatian GSM network, VIPnet. This acquisition will increase mobilkom austria's stake in VIPnet to 99%, from 80%. Vecernji List, a Croatian publishing house, owns the remaining 1%.
The purchasing price for the 19% stake amounts to US$70 million. The completion of the transaction is conditional, among other things, upon receiving prior consent from VIPnet's senior lenders. The closing is expected to take place within 30 days.
First launched in July 1999, VIPnet is the leading mobile operator in Croatia with over 1.1 million subscribers and a market share of 50.3% at the end of March 2003. VIPnet has a strong track record: it became GSM market leader within 6 months of operations, achieved a positive EBITDA in the third quarter after the launch and a positive net result already in the financial year 2000.
With the exit of Western Wireless International, mobilkom austria is now able to further integrate VIPnet's operations into the activities of the mobilkom austria group and strengthen its international footprint.
WWI was advised by Goldman Sachs in this transaction."
Posted to the site on 5th June 2003
Posted to: www.cellular-news.com/story/9002.php