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MOBILCOM SELLS 20% STAKE IN FREENET.(Brief Article)
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Tech Europe
- Article date:
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September 30, 2003
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Copyright informationCOPYRIGHT 2003 Europe Information Service. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Alternative operator MobilCom AG has placed 20 per cent of its 73 per cent stake in Freenet AG, its Internet subsidiary. In so doing, it has generated Euro 176.1 million (Euro 47 per share). With the proceeds from this sale, MobilCom is planning to pay off its outstanding debts of Euro 117.6 million. The proceeds generated in excess of this amount will be used to expand its core business as a mobile telephony service provider. MobilCom will keep its remaining 59.89% of freenet (9.90 million shares) in the long-term.
This transaction, to be carried out by Deutsche Bank, will reduce MobilCom's current 73% holding (or 13.65 million shares), to 52.9% of the equity or 9.90 ...
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