"Deutsche Telekom AG has announced on Friday that has agreed with France Télécom to buy the Dutch telecommunications provider, Orange Netherlands for about EUR 1.3 billion on a debt/ cash free basis. The European Commission has already approved the acquisition and DT expects the deal to be closed on 1 October.The number of T-Mobile customers in the Netherlands is expected to rise by more than 2.1 million to around 4.8 million at present
DT estimates total net present value of synergies after restructuring costs at around EUR 1.0 billion in the next few years, with around half of this being generated in the first six years, in particular from network integration and reduced marketing expenses.
The joining of forces of T-Mobile and Orange Netherlands brings together two successful telecommunications companies with a total of 4.6 million mobile customers at the end of 2006. The combined number of customers of both companies currently stands at around 4.8 million.
T-Mobile Netherlands is the third largest mobile communications provider in the Netherlands, with revenues of EUR 1.1 billion in the 2006 financial year. With 2 million customers at the end of 2006, Orange Netherlands is the fourth largest mobile communications operator in the Netherlands. Orange generated overall revenues of around EUR 0.6 billion last year. EBITDA for financial year 2007 is expected to be in the order of EUR 120 million for the Orange Netherlands mobile business.
Orange Netherlands additionally operates a broadband business, which had around 554,000 customers at the end of the 2006 financial year.
“The acquisition of Orange Netherlands has no significant effect on the proportion of Deutsche Telekom AG's net financial liabilities against its EBITDA, the ratio of which was about 2:1 for the 2006 financial year," DT said in a press release.
The market share of T-Mobile Netherlands and Orange Netherlandsd (as of 31 Dec 2006, based on number of SIM cards) was cc. 15% and cc.12%, respectively.
They mobile revenues in FY2006 totalled EUR 1,138 million (T-Mobile) and EUR 621 million (Orange)."
Source:
Portfolio Online Financial Journal
01.10.2007