Elisa and Osuuskunta PPO have signed an agreement in which Elisa acquires fixed network operator PPO's telecom and IT businesses. The acquisition includes PPO's ownerships in fixed network operators Kymen Puhelin Oy and Telekarelia Oy…
Elisa and Osuuskunta PPO have signed an agreement in which Elisa acquires fixed network operator PPO's telecom and IT businesses. The acquisition includes PPO's ownerships in fixed network operators Kymen Puhelin Oy and Telekarelia Oy.
In 2011 revenue of these three companies totalled approximately EUR 100 million, of which EUR 7 million was household appliance business. EBITDA was approximately EUR 22 million and number of personnel 470. The companies have circa 70,000 fixed broadband, 54,000 PSTN and 35,000 cable-TV subscriptions.
The acquisition price is approximately EUR 101 million, of which EUR 96 million in cash and EUR 5 million in Elisa shares (approximately 300,000 shares or 0.2 per cent of Elisa's share capital). The acquisition price includes 100 per cent of PPO-Yhtiöt Oy's, 46 per cent of Kymen Puhelin Oy's and 67 per cent of Telekarelia Oy's share capital. The transaction has no impact on Elisa's dividend payment capabilities.
The transaction follows Elisa's strategy. Annual synergy benefits from PPO of EUR 10 million are estimated to realise mostly in 2014. In addition, the new Group companies increase the customer base for Elisa's services.
The transaction is subject to the approval of the Finnish Competition Authorities and normal condition precedents. Elisa estimates to close the transaction during the first quarter 2013.
Elisa will arrange a conference call on the subject for investors and equity analysts today, on 20 December at 11am Finnish time (9am London time). The conference call number is +358 9 82440981 and the PIN code 14199.
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