Telecom Italia and Tiscali have signed an agreement for Telecom Italia to purchase Tiscali’s 95% stake in Liberty Surf S.A., a French company listed on the Euronext in Paris.
The price agreed for Tiscali’s stake is approximately 266 million euro,valuing 100% of Liberty Surf at 280 million euro. This valuation takes into account Liberty Surf’s net cash of approximately 28 million euro and corresponds to an estimated Enterprise Value of 252 million euro for 100% of the company.
Once the transaction is finalized, Telecom Italia will launch a public offer for the remaining 5% of Liberty Surf’s share capital, as required by law.
Finalization of the transaction is conditional on approval by the French antitrust authorities.
Liberty Surf is a leading Internet Service Provider in France,with a nationwide presence. Through its own network infrastructure, it provides services to approximately 344,000 broadband customers and approximately 700,000 dial-up customers (of which 448,000 retail). The company’s 2004 revenues totalled approximately 225 million euro.
Mediobanca and Sopaf Corporate Finance were the financial advisers for Telecom Italia while Tiscali was represented by Rothschild.
Milan, April 5, 2005