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Hutch to acquire Orange Austria for €900m
03 February 2012
Hutchison Whampo’s H3G Austria completes negotiations to buy Orange Austria from France Telecom and private equity
Hutchison 3G Austria is to acquire Orange Austria from Mid Europa Partners and France Telecom. France Telecom-Orange holds a 35% stake in Orange Austria and the private-equity investor MEP the other 65%.
The deal implies an enterprise value of around €1.3 billion for Orange Austria before the sale of some assets to Telekom Austria for €390 million.
Telekom Austria is buying some spectrum, base station sites, the mobile phone operator Yesss! and some intellectual property rights from Orange Austria.
That part of the deal means that Hutchison’s 3 Austria is paying €900 million for the rest of Orange Austria, corresponding to a 2011 enterprise value to ebitda multiple of 6.9x.
The transactions are expected to be completed by the end of second quarter or early third quarter of 2012, subject to the approval by the regulatory and anti-trust authorities.
H3G Austria expects to generate cost and capex synergies with a net present value of at least €500 million from the combination. The company has also agreed to pay an integration related performance-based consideration of up to €70 million to Mid Europa Partners two years after closing of the transaction. GTB
Further reading from Global Telecoms Business:
Turkcell and Telekom Austria eyeing Vivacom 18 Jan 2012
Global Telecoms Business deals of the year 2011 01 Jan 2012
Hutch 'to buy Orange Austria' for $1.4bn 28 Nov 2011
Hutchison to launch LTE in Austria 17 Nov 2011
Investor buys 20% of Telekom Austria 24 Oct 2011