Telecom Italia announces that Telecom Italia´s 94% owned French subsidiary, 9Telecom, which operates in the fixed telephony and Internet markets, today launched a friendly tender offer to acquire 100% of Jet Multimedia. The offer price is Euro 83 per share, or a total value for Jet Multimedia of 887 million Euros.BR>
This operation enables 9Telecom to further strengthen its strategic position, targeted at attaining a leading position in the provision of fixed telephony services, data transmission, Internet access and multimedia services. The development of an integrated offer between 9Telecom and Jet Multimedia will optimize complementarity between 9Telecom´s connectivity and value added services and Jet Multimedia´s online services in terms of commercial offerings and market share.
Emphasizing the friendly nature of this tender offer, the Jet Multimedia Supervisory Board has expressed its unanimous opinion in favor of the operation. Accordingly, all shareholders represented on the Supervisory Board, accounting for 28.4% of voting capital, have pledged to submit their shares to this offer. Founded in 1989, Jet Multimedia is France´s leading online multimedia services company, offering an integrated range of diversified Internet, WAP, Audiotel and Minitel services. In the first six months of 2000, Jet Multimedia registered a turnover of 45.2 million euros (+59% compared to the first half of 1999).
"Jet Multimedia´s advanced portfolio of hosting and development services, allied with 9Telecom´s network employing the latest technologies, and its existing range of services, will lead to the creation of a unique service provider, offering service packages tailored to the business market. This alliance confirms Telecom Italia´s ambitions in the French market, and signals a substantial increase in 9 Telecom growth in the value added business services market," said Bernard Marchant, 9 Telecom Chairman.
"An alliance with a major industrial telecommunications concern such as Telecom Italia will enable Jet Multimedia to accelerate its growth. This operation is founded upon a common market vision. Not only does it create a partnership with major French operator 9 Telecom, it also gives Jet Multimedia access to the Telecom Italia Group´s enormous resources. This will consolidate our leading position in the hosting and multiplatform development markets," stated Eric Peyre, Chairman of the Jet Multimedia Oversight Committee. The public purchase offer is being conducted on behalf of 9 Telecom by Lehman Brothers and Société Générale.