Siemens Exits Iskratel JV

Siemens will withdraw as a shareholder of Slovenian telecommunications equipment manufacturer

June 17, 2009

2 Min Read

KRANJ, Slovenia -- Iskratel, the leading Slovenian telecommunications equipment manufacturer and solution provider, Siemens Aktiengesellschaft and Slovenian shareholders signed on Friday 12 June 2009 a contract, which states that Siemens Aktiengesellschaft will withdraw as a shareholder of Iskratel. At the same time, the procedures of the partial withdrawal of Gorenjska banka as a shareholder in Iskratel are taking place.

Since its inception in 1989, the joint venture between Siemens and Slovenian shareholders has been operating successfully for all the stakeholders involved. However, in the past few years the business environment has changed significantly and, therefore, the synergies of the development focus of the two partners stopped yielding significant business outcomes.

Three years ago, Siemens and Nokia decided to join their forces in the telecommunications carrier business by establishing Nokia Siemens Networks. In such new circumstances the continuity of the joint venture was no longer an optimal solution for the future prosperity and growth of Iskratel, whose business model has traditionally relied on its own core competences in all vital business functions. Iskratel perceives this decision as an opportunity to follow its global vision and high ambitions in the communication infrastructure and service delivery market, and is ready for complementary strategic partnerships.

In the best interests of all the parties involved, the shareholders and management of Iskratel has come to agreement that Siemens Aktiengesellschaft exits the joint venture before the expiry of the original 25-year term of the agreement, and that Siemens Aktiengesellschaft is compensated for its withdrawn 47.7% share. The procedure was legally completed with a decree of the District Court in Kranj on 16 June 2009. The parties agreed not to disclose the economic terms.

Gorenjska banka is also making a partial withdrawal from Iskratel. As a long-term financial investor, it will thus continue to maintain a minority, 25% stake in the company, which it intends to gradually sell off over the next few years. “Gorenjska banka's financial investment in Iskratel has proven to be a prudent business decision, not least of all because Iskratel is one of the most important and internationally recognized technology companies in Slovenia, having an important impact on the development of the local social environment and economic strength. In Gorenjska banka's opinion, Iskratel's relationship with investors and partners has been highly professional, as seen in the excellent business cooperation between Gorenjska banka and Iskratel to date,” said Gorazd Trèek, Gorenjska banka, President and CEO

Iskratel d.o.o.

Siemens AG (NYSE: SI; Frankfurt: SIE)

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