Closing of the purchase transaction of Tele2 Polska Sp. z o.o. (acquisition of material assets) (50/2008)
WARSAW, Poland, September 15, 2008: Netia SA (the “Company”), Poland’s largest alternative provider of fixed-line telecommunications services, announced that on September 15, 2008 it finalised the purchase of 1,000 shares in Tele2 Polska Sp. z o.o., with its seat in Warsaw (“Tele2”), of the nominal value of PLN 1.000.000, representing 100% of Tele2’s share capital and conferring the right to 100% of the votes at the shareholders’ meeting of Tele2 (the “Shares”).
The Company informed in its current report No. 35/2008, dated June 30, 2008, on the conclusion of the share purchase agreement with Tele2 Sverige AB referring to the purchase by Netia of 100% in Tele2 (the “Agreement”).
On September 15, 2008 the Shares were transferred to Netia and the purchase price was paid according to the provisions of the Agreement.
The Shares were classified as material assets, as they represent 100% of the share capital of Tele2. The acquisition of the Shares was financed from Netia’s own resources and constitutes an investment of a long-term nature.
Apart from the contractual relations described in the Agreement and related documents, there exist no other ties between Netia and the persons managing or supervising Netia and the seller of the aforementioned assets.
The acquisition of Tele2 is a transformational move in realizing Netia’s mass market strategy. Netia projects to increase its annual revenue base by over 40%, becoming nearly 3 times larger by revenue than the next largest altnet. The pro forma combined business has a combined customer base of over 1,000,000 fixed voice customers (own network + WLR) and over 335,000 broadband services, with a significant potential to upsell its broadband, value added and content services to Tele2’s clients. Netia management is targeting to deliver at least PLN 30 million in annualized synergies within 12 months of closing, principally from marketing and network cost savings.