UGC TO ACQUIRE LARGEST BROADBAND OPERATOR IN SLOVENIA.
Since its foundation in 1999, Telemach has realized significant financial and operational growth. Revenue has grown over 25% per annum over the last three years and more than 85% of its network has been upgraded to 862 MHz. In addition, approximately two-thirds of Telemach's network supports broadband Internet and digital television services.
UGC will acquire a 100% interest in Telemach based on a total enterprise value of euro 74 million, which represents a multiple of approximately 8.2 times expected 2004 fourth quarter annualized normalized EBITDA. UGC will pay cash of approximately euro 71 million for its 100% interest.
The transaction is subject to review by the Slovenian competition authorities and expected to close in the first quarter of 2005.
Mike Fries, president and CEO of UGC, said, "This acquisition represents a unique opportunity to take a leadership position in a new Central and Eastern European market for UGC. Slovenia, which recently joined the EU, has the highest GDP per capita in the region and is adjacent to Austria and Hungary where we currently have large operations. Telemach has upgraded most of its network and, as the largest operator in the country, has achieved good scale and profitability."
Thierry Baudon, CEO of EMP Europe, said "Since EMP became the majority shareholder of Telemach in 2000, Telemach developed from a small cable operator with less than 20,000 subscribers, into Slovenia's undisputed market leader with more than 100,000 video subscribers and operating margins in excess of 45%. Over the last five years, Telemach upgraded its network, introduced new services such as high-speed Internet access and digital video services, thereby changing the public's perception of cable services from a utility-type operator to an innovative company providing a wide range of value-added products and services. We are delighted to have successfully developed the company and wish Telemach and its new owners well for the future."
Rothschild advised EMP Europe on this transaction.
About UnitedGlobalCom UGC is a leading international provider of video, voice, and broadband Internet services with operations in 14 countries, including 11 countries in Europe. Based on the company's operating statistics at September 30, 2004, UGC's networks reached approximately 15.5 million homes passed and served over 11.1 million RGUs, including approximately 9.1 million video subscribers, 761,000 telephone subscribers and 1.3 million broadband Internet subscribers.
EMP Europe is the leading private equity firm in Central and Eastern Europe with investments in CATV, fixed and mobile telephony and other infrastructure related industries. EMP Europe invested around USD 500 million in the Region over the last five years. The sale of Telemach follows a successful sale of EMP Europe's other CATV investment -- Aster in Poland to Hicks Muse as well as roll-up of its stakes in Mobifon and Cesky Mobile into the parent -- TIW.
For more information, visit http://www.unitedglobal.com.
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|Title Annotation:||Telemach d.o.o., UnitedGlobalCom Inc.|
|Comment:||UGC TO ACQUIRE LARGEST BROADBAND OPERATOR IN SLOVENIA.(Telemach d.o.o., UnitedGlobalCom Inc.)|
|Date:||Feb 1, 2005|
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