FT Sells Eutelsat Stake to Eurazeo

PARIS -- France Telecom sells its 23,14 percent stake in Eutelsat to Eurazeo.The transaction values France Telecom’s stake at 447 million euros, and Eutelsat’s equity at 1,93 billion euros.France Telecom will reinvest a maximum of 74 million euros for a 20% stake in the holding company created to acquire Eutelsat.Net proceeds of the transaction for France Telecom, amounting to approximately 375 million euros, will be used to reduce debt.On February 4, 2003, France Telecom concluded an agreement with Eurazeo to sell its 23.14% stake in Eutelsat to a holding company created for this purpose and controlled by Eurazeo. France Telecom will acquire a 20% stake in the holding company, which owns the 23,14% of Eutelsat shares.The transaction values of Eutelsat’s equity at 1.93 billion euros and France Telecom’s 23.14% stake at 447 million euros. The holding company will borrow between 92 and 120 million euros. Depending on the actual amount of the borrowing, France Telecom will reinvest between 68 and 74 million euros in the holding vehicle, thus acquiring a 20% stake. The net proceeds of the transaction for France Telecom will therefore amount to between 373 and 379 million euros. This amount will be paid in cash to France Telecom at the closing of the transaction, expected in Q2 2003.France Telecom SA