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Callahan closes "Mixed acquisition"
March 17, 2002 – The Shareholders of Telenet and the Mixed Intercommunales, yesterday (17 March 2002, 18.00) announced that they have signed an agreement with Callahan Associates, the global communications development and operating company, to close its acquisition of the Mixed operations in Flanders, Belgium.
The agreement will see an introduction of a further x173 million capital from Callahan Associates International, Electrabel, Interkabel and the GIMV and financial consortium. On closing, Callahan will invest x70 million, Electrabel x70 million, GIMV x15 million, the financial consortium x15 million and Interkabel x2 million.
A new distribution of equity ownership has been agreed, with Callahan retaining 24% of Telenet shares. The closing of the acquisition of the Mixed companies will take place within 6-8 weeks. At closing, Callahan Associates and the other shareholders will pay the Mixed Intercommunales half the agreed cash amount, the balance being payable before June 2003. The short term financing of Telenet, until closing will be covered by a combination of cash from the shareholders and the current bank facility.
The agreement has substantially strengthened Telenet's balance sheet through the conversion of x893 million Vendor notes from the Stage 1 funding, into equity. This exchange initiative has strengthened Telenet's balance sheet by a minimum x500 million.
Commenting on the agreement, Andrew Sukawaty, President and COO of Callahan Associates, said: "This further investment, in very difficult financial markets, reflects our determination to be part of Flanders future. We will support Flanders in its leap forward in high speed Internet, communications, and digital entertainment services. It will bring the Region great infrastructural advantages over other parts of the European Community. Our investment and that of our partners, ends the artificial separation between Telenet and its customers".
There are 16 municipalities within the Flanders Region. The sale of the Mixed intermunicipalities represent 10 of these. The remainder will maintain their ownership.
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