Registration of share capital increase in Netia’s subsidiary Świat Internet SA
WARSAW, Poland – February 1, 2007 – Netia SA (“Netia”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services, today announced, in relation to the press release dated January 23, 2007, that on January 31, 2007 it obtained information about the registration of the share capital increase in Netia’s wholly-owned subsidiary Świat Internet SA (the “Company”). The Company’s share capital was increased from PLN 174,297,000 to PLN 1,124,999,740, i.e., by PLN 950,702,740 PLN, by way of issuing 95,070,274 new, ordinary registered series M shares, PLN 10 par value per share, with the total nominal value of PLN 950,702,740.
The increase of the Company’s share capital was executed through the private subscription, that is the taking up by Netia of all new series M shares in exchange for the contribution in kind, valued by a property appraisal expert in the amount of PLN 950,702,740, composed of the elements of the telecommunication network owned by Netia and including, in particular, telecommunications lines and ducts (the “Contribution”).
Following the increase, the share capital of the Company amounts to PLN 1,124,999,740 and is composed of 112,499,974 shares, PLN 10 par value per share, entitling to a total of 112,499,974 votes at the Company’s general shareholders’ meeting. Netia owns shares representing 99.99% of the Company’s increased share capital and 99.99% of the overall number of votes at the Company’s general shareholders’ meeting. Pro Futuro SA, Netia’s wholly owned subsidiary, is the second shareholder of the Company, whose shares represent 0,01% of the Company’s share capital and 0,01% of votes at the general shareholders’ meeting.
The gross book value of the Contribution as at December 31, 2006 disclosed in Netia’s accounts equals PLN 1,797,938,828.52; the accumulated depreciation of the assets composing the Contribution equals PLN 545,201,704.21 as at December 31, 2006; and the accumulated impairment recognized until December 31, 2005 amounts to PLN 470,101,177.88. The Contribution is brought to the Company in the value resulting from the valuation conducted by a property appraisal expert.
This transaction affects the stand-alone accounts of Netia and the Company, but has no impact on the consolidated group accounts of Netia.