Telekom Austria Acquires

Telekom Austria buys Croatia's largest cable operator

June 8, 2011

2 Min Read

VIENNA -- The Telekom Austria Group today announced, (VSE: TKA, OTC US: TKAGY) that it has signed a purchasing agreement for the acquisition of a 100% stake in, the largest cable operator in Croatia. The Telekom Austria Group acquires this company through its Croatian subsidiary Vipnet and finances the purchasing price of EUR 93.0 million from existing cash flow.

Acquisition in Line with Convergence Strategy“Fixed-to-mobile convergence has turned into a fundamental business driver in the telecommunications industry and represents an important strategic pillar for the Telekom Austria Group. The acquisition of a cable operator will enable Vipnet to profit from the expected strong growth of fixed net broadband, TV and convergent products and to position itself as convergent service provider on the Croatian market,” said Hannes Ametsreiter, CEO Telekom Austria Group.

The Telekom Austria Group is pushing ahead with the convergence of fixed net and mobile communication beyond its Austrian borders and the value-enhancing acquisition of marks a further step in the realization of the Group’s convergence strategy across its geographic footprint. A first milestone was set in July 2010 with the merger of the Austrian fixed net and mobile operations into A1 Telekom Austria. The acquisition of two fiber-optic operators in September 2010 in Bulgaria, where the Group has a successful market leading position through its local subsidiary Mobiltel, was a logical continuation of this corporate strategy across the CEE area.

As Croatia’s leading cable operator, offers fixed net voice telephony, broadband and TV services with a focus on the residential customer segment. operates its own cable network infrastructure in the main Croatian urban centers and therefore has a significant competition edge over other operators that are relying only on unbundling. was established in 2007 through the merger of two Croatian cable operators under the aegis of the Bewag (Burgenländische Elektrizitätswirtschafts-Aktiengesellschaft). The Croatian cable operator has established a strong local brand with

Telekom Austria AG (NYSE: TKA; Vienna: TKA)

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