Belgacom Buys Proximus Stake

BRUSSELS, Belgium -- Belgacom and Vodafone have concluded an agreement under which Vodafone’s shares in BelgacomMobile (Proximus) will be sold to Belgacom for a total of EUR 2 billion, which takes into account anet cash position. It is estimated that at the end of September, Proximus’ net cash position will beapproximately EUR 1.4 billion. Following this operation, Belgacom Mobile will become a whollyownedsubsidiary of Belgacom. This transaction is subject to approval by the competentcompetition authorities. Lehman Brothers Inc. acted as Belgacom’s financial adviser and issued afairness opinion in this transaction.

Didier Bellens, Belgacom President & CEO states: "Our strategy has always been to be a leader in all of ourbusinesses. The agreement with Vodafone will allow us to strengthen the cooperation within our group, andrespond to the market trend towards convergence by focusing on delivering fully integrated solutions to ourcustomers. The Group now has all the necessary assets to address the current market evolutions, whilemaintaining its leadership position in Belgium.”

The business relationship between Proximus and Vodafone will be maintainedIn the meantime, Proximus and Vodafone have signed a revised commercial cooperation with an initial 5 yearterm. As Didier Bellens says: “From the beginning, Vodafone has been an active and dynamic partner forProximus. I am delighted that our successful business relationship with Vodafone can be preserved beyondthis financial transaction.” Proximus and Vodafone will further cooperate in various areas, such as buyingactivities (handsets, network, etc.), Vodafone live!, Vodafone products and services, multinational customers,roaming, etc.

Belgacom SA (Euronext: BELG)