DGAP-News: Tele Columbus AG

INVESTOR RELATIONS RELEASE
 

Acquisition of remaining minority interests from Vodafone Kabel Deutschland in KMS
 

Tele Columbus now owns 100 percent in Kabelfernsehen München ServiCenter (KMS)
 

- KMS supplies 455.000 homes connected with cable TV, broadband internet or telephony

- Full control should facilitate integration

- Faster rollout of the new PŸUR product world
 

Berlin, 27.10.2017. Tele Columbus AG agreed with Vodafone Kabel Deutschland GmbH to acquire their stake in Kabelfernsehen München Servicenter GmbH & Co. KG and Kabelfernsehen München ServiCenter Gesellschaft mit beschränkter Haftung - Beteiligungsgesellschaft. Based on this agreement pepcom Süd GmbH, a fully owned subsidiary of Tele Columbus AG, which was already majority shareholder in the two companies, takes over the remaining 30,22 Prozent in Kabelfernsehen München Servicenter GmbH & Co. KG and 24 Prozent in Kabelfernsehen München ServiCenter Gesellschaft mit beschränkter Haftung - Beteiligungsgesellschaft. Following this transaction Tele Columbus AG is now the sole owner of these two companies.

The purchase price amounts to EUR 40 million upon closure of the contract and an additional EUR 12 million over the course of the first quarter of 2018. With 5.22x the acquisition multiple (ie FY2016 Normalised EBITDA in relation to the purchase price) was highly value attractive and further underlines the rationale for this transaction.

"We achieved an important milestone. The acquisition of the remaining KMS shares from Vodafone Kabel Deutschland gives us full control over both entities and will allow us a faster rollout of our entire product range in the Munich area" states Frank Posnanski, Chief Financial Officer of Tele Columbus AG. "Additionally this should facilitate the operational integration of KMS into Tele Columbus and the availability of our new PŸUR product world across KMS' footprint".

As part of the agreement, Tele Columbus will handover around 15.000 homes connected to Vodafone Kabel Deutschland over the next 12 months which could not be upgraded for two-way communication at economically attractive terms. Currently these homes connected are already supplied with cable TV signals from Vodafone Kabel Deutschland.

In general, KMS supplies around 455.000 homes connected in the Munich region and southern Germany with cable TV, broadband internet or fixed-line telephony.
 

About us

The SDAX-listed Tele Columbus Group serves 3.6 million homes connected thereby being Germany's third-largest cable network operator. Its brand PŸUR stands for simplicity, performance and fairness in relation to TV and telecommunication products. Via its state-of-the-art fibre network PŸUR offers high-speed broadband internet including fixed-line telephony as well as more than 250 TV channels on a digital entertainment platform which combines linear TV with streaming services. To its housing association partners PŸUR offers flexible models of cooperation and state-of-the-art services such as telemetric and tenant portals. As a full-service partner for municipalities and regional utilities Tele Columbus Group is actively supporting the fibre-based broadband internet expansion in Germany. For its business customers the Group offers carrier services and corporate solutions via its fibre network. Besides its headquarter in Berlin the Company has locations in Hamburg, Leipzig, Ratingen and Unterföhring/Munich. Since January 2015 Tele Columbus AG is traded on the regulated market (Prime Standard) of the Frankfurt Stock exchange and since June 2015 listed in the SDAX.
 

Disclaimer

This release contains forward-looking statements. These statements are based on management's current expectations or beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Although we believe that such forward-looking statements are reasonable, we cannot assure you that any forward-looking statements will prove to be correct. Such forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks and uncertainties, the forward- looking events and circumstances discussed in this Investor Relations release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on the forward-looking statements.

This release contains references to certain Non-GAAP financial measures, such as Normalized EBITDA and Capex, and operating measures, such as RGUs, ARPU, and Unique subscriber calculation. These supplemental financial and operating measures should not be viewed in isolation as alternatives to measures of Tele Columbus' financial condition, results of operations or cash flows as presented in accordance with IFRS in its Consolidated Financial Statements. The Non-GAAP financial and operating measures used by Tele Columbus may differ from, and not be comparable to, similarly titled measures used by other companies. For further information please see in particular the Footnotes in this Investor Relations release and the financial statements.

In addition, this release contains pro-forma financials. Our pro forma financials have been prepared for illustrative purposes only. They are based on the assumption that the primacom and pepcom acquisitions had occurred on 1 January 2015. Because of their nature, our pro forma financials address a hypothetical situation and, therefore, do not represent our actual results of operations. It is not necessarily indicative of the results that should be expected in the future.