A traditional company the Swiss Telecom industry is the history of The cable network operators UPC, Switzerland, which emerged from the former Cablecom, is fused in the course of the year, with Sunrise . The Name with the three letters will disappear forever.
Hardly the ink of the signatures under the contract of sale in a dry, gave Sunrise the Acquisition of UPC on late Wednesday evening. “We can create the biggest Challenger to Swisscom in the Swiss market,” said Sunrise CEO, Olaf Swantee yesterday in a telephone conference.
Financial tour de force
Until then, Sunrise to open the coffers wide. The price of UPC is 6.3 billion Swiss francs. Compared to the economic Size of Sunrise, this means a huge financial commitment. In the past financial year, the company generated a turnover of 1.8 billion Swiss francs. On the stock exchange Sunrise is 3.6 billion Swiss francs value, which is significantly lower than the price for UPC.
in Addition to the expense for UPC additional expenses still to come on Sunrise. At the end of January the company of the Confederation has the frequencies for the super mobile radio standard 5G bought. Sunrise has spent 89.2 million Swiss francs.
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It is the question of how Sunrise, the Acquisition of UPC wants to lift. The company proposes to its shareholders a financing in several steps. On the one hand, Sunrise assumes a portion of the outstanding debt of UPC in the amount of 3.6 billion francs. On the other hand, Sunrise shall transfer the remaining sum of the purchase price of 2.7 billion Swiss francs in cash to the UPC parent company Liberty Global. to be able to
this cash amount to Finance, want to Sunrise new shares capital in the amount of 4.1 billion Swiss francs. From the proceeds, Sunrise used a further 1.1 billion Swiss francs to pay off the debts. The shareholders must approve the capital increase at an extraordinary General meeting of shareholders. The shareholders ‘ meeting is to be held in summer or autumn.
All eyes are therefore on the major shareholders in Freenet, which holds almost 25 per cent of Sunrise. The chief financial officer of the German mobile radio provider, has indicated in early February that he would not stand for a possible acquisition of Sunrise in principle. However, it is on the framework, said Ingo Arnold at the time.
criticism of the Deal
Now Freenet pulls a u turn. The operator had yesterday said that the Form of the Takeover was “disturbing” and he will not participate in the capital increase. Freenet criticised the fact that in the first place, the existing shareholders, the risks would have to bear.
investors see the plans of Sunrise at the opening of the stock exchange also skeptical: At the close of trading, the shares traded compared to the previous day’s 8.5 percent in the Minus. The price of a competitor, Swisscom gave in easily.
Sunrise-in-chief Olaf Swantee reckons that the competition Commission is waving the Acquisition in the second or third quarter.
Undeterred by the course of developments referred to industry experts, the Acquisition as a strategically useful. The Deal is the result of a “very strong industrial logic,” said Analyst Ulrich Rathe of the Bank Jefferies. The concern was that the approval for the required capital increase would not be a matter of course.
Sunrise a performance brings a powerful mobile network with 2.3 million subscribers in the partnership.
With the new Sunrise would be in this country caused a strong number two. It would be the first provider, the market leader, Swisscom could oppose a full offer. The talk is of mobile, fixed-line telephony, Internet and television from one source.
Sunrise brings a powerful mobile network with 2.3 million subscribers in the partnership. The dowry of the UPC access to nearly 1.1 million households via cable TV and the sports channel Mysports.
The schedule provides that the merged Sunrise in the second half of the year. In addition to the commitment of the shareholders, it also needs the approval of competition authorities. Sunrise-chief Swantee reckons that the competition Commission is waving the Acquisition in the second or third quarter.
(editing Tamedia)
Created: 01.03.2019, 06:56 PM
