ROME—Telekom Austria has acquired Telecom Italia Mobile’s 25-percent stake in mobile operator Mobilkom Austria for $676 million, of which $651.5 is the purchase price and $24.5 million is the dividend for the 2001 financial year. TIM also reached an agreement with Telekom Austria’s main shareholder OIAG for a gradual and coordinated exit of its interest in Telekom Austria beginning in the second half of the year.
Telekom Austria will acquire the Mobilkom stake through the acquisition of 100 percent of Autel, a holding company wholly owned by TIM. Autel’s only asset is the Mobilkom Austria stake.
The transaction gives Telekom Austria 100-percent control of Mobilkom and increases its “future strategic flexibility,” which many industry watchers say will make it easier for Telekom Austria to entice a future buyer. In addition, the sale gives TIM a capital gain on a consolidated basis of $153.9 million.
As part of the deal, Telecom Italia also reached an agreement with OIAG regarding its current 29.8-percent holding in Telekom Austria. The revised agreement will allow Telecom Italia to gradually dispose of its interest in Telekom Austria, allowing OIAG to further its privatization of the Austrian telecom company.
Under the agreement, Telecom Italia can dispose of up to 70 million shares—about half its holding—of Telekom Austria in the second half of 2002. In 2003, OIAG can place 25 million shares of any offering and Telecom Italia will then have the right to sell any residual shares of the previously authorized 75 million. The two companies will have the rights to sell an equal number of shares thereafter in a public market transaction.
Telecom Italia will lose some of its special rights under the OIAG agreement. Following the sale of its first 50 million shares, but no later than April 30, 2003, any remaining special rights will expire, along with the terms of the two Telecom Italia representatives to the supervisory board.
The deal does not require regulatory approval.
