DT Takes Full Control of PTC

German group secures undisputed ownership over Polish mobile operator

December 15, 2010

1 Min Read

BONN, Germany -- Deutsche Telekom has entered into an agreement with the French company Vivendi, the Polish company Elektrim and creditors of Elektrim, among which the Polish State and Elektrim's bondholders, to secure 100 percent, undisputed ownership of the Polish mobile operator Polska Telefonia Cyfrowa (PTC). The agreement between the three parties has been signed today. Closing of the transaction is subject to conditions.

The agreement essentially includes the following stipulations:

Initially Deutsche Telekom held 49 percent of the shares in PTC. In 2005 Deutsche Telekom exercised a call option for further 48 percent of the shares in PTC (increasing its stake to 97 percent) and in 2006 made an initial payment in the amount of EUR 0.7 billion to Elektrim. Deutsche Telekom will now make a second payment on the purchase price for such 48 percent of the shares in PTC to Elektrim.

In addition, Deutsche Telekom will acquire the last outstanding 3 percent of PTC by purchasing the two interim holding companies Carcom and Autoinvest. The interests in these two holding companies are held by Elektrim (49 percent) and Vivendi (51 percent).

In consideration thereof, Deutsche Telekom will pay a total of EUR 1.4 billion to Elektrim and Vivendi. The larger portion of this payment will go to Elektrim as the remainder of the purchase price for the 48 percent of the shares in PTC being the subject of the call option. The payment by Deutsche Telekom will also include the purchase price for Vivendi’s and Elektrim’s shares in the two holding companies. A smaller portion of DT's total payment will be in consideration of a settlement of all remaining legal disputes among the parties involved.

Deutsche Telekom AG (NYSE: DT)

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like