Belgacom Buys Scarlet

BRUSSELS -- On 15 February, Belgacom announced the acquisition of Scarlet SA. However, approval from the competent competition authorities was still required to finalize the transaction. The Belgian Competition Council formally approved the acquisition on 7 November. The transaction was concluded today.

The acquisition of Scarlet SA will enable Belgacom to penetrate a new market segment, optimize its market position and reinforce its multiplay offering in Belgium.

Scarlet offers its international customer base of 180.000 broadband clients a variety of products with a “no frills” positioning which Belgacom will continue under the Scarlet brand. Scarlet will continue to operate as a separate business unit while network and operational synergies are being realized. The customers will keep their current contracts and benefits.

Belgacom is buying all Scarlet SA's shares for €175 million on a debt- and cash-free basis, €10 million less than initially announced. This price review has been agreed with Scarlet's shareholders, as Belgacom has made a number of commitments to the Competition Council. The financial results of Scarlet SA will be incorporated in Belgacom's consolidated results as from 1 December 2008.

Belgacom SA (Euronext: BELG)

Scarlet B.V.