Deutsche Telekom and Strabag conclude agreement on sale of DeTeImmobilien

July 23, 2008

2 Min Read

BONN, Germany -- Deutsche Telekom and the Austrian company Strabag SE today signed an agreement on the sale of Deutsche Telekom's fully-owned subsidiary DeTeImmobilien, Deutsche Telekom Immobilien und Service GmbH (DeTeImmobilien). Under the terms of the agreement, DeTeImmobilien will be sold by Deutsche Telekom and taken over by Strabag effective October 1, 2008.

With around 6,240 employees, approximately 5,600 of them within Germany, DeTeImmobilien provides full-spectrum real estate and facility management services. The company generated revenues of around EUR 1 billion in 2007 and its largest customer is Deutsche Telekom.

Far-reaching agreements have been reached to safeguard the jobs of the employees and regulating the financial conditions for them.

In parallel with the sale of DeTeImmobilien, a comprehensive service agreement was concluded, based on market and industry benchmarks, with an initial term of ten years. This ensures that the necessary facility management services will continue to be performed for Deutsche Telekom in future.

The real estate of the Deutsche Telekom Group is not affected by the sale of the real estate service provider. DeTeImmobilien will continue to manage the real estate as before.

The partners have agreed to keep the financial details of the transaction confidential.

The transaction is subject to approval of the Supervisory Board of Deutsche Telekom AG.

For Deutsche Telekom, the sale of DeTeImmobilien represents a further step in focusing on its core business as part of its “Focus, fix and grow” strategy. Deutsche Telekom announced in early March 2007 that it would be look into the possibility of selling various companies as part of this strategy. This sale of DeTeImmobilien was preceded by the sale of the French company Club Internet, the Spanish company Ya.Com, Media & Broadcast, and the remaining shares in Sireo (real estate marketing company).

Deutsche Telekom AG (NYSE: DT)

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