Release of 22.10.2014

Telekom Austria Group agrees to merge its Macedonian subsidiary Vip Operator with One

Today Telekom Austria Group (VSE: TKA, OTC US: TKAGY) announces that it has agreed with Telekom Slovenije Group to merge their subsidiaries Vip Operator and One, both operating in the Republic of Macedonia.

Telekom Austria Group will hold 55% and have sole control over the newly created entity, whereas Telekom Slovenije Group will hold 45%. Furthermore, the agreement also includes call and put options for the exit of Telekom Slovenije Group from the joint venture within three years of the closing of the merger. The closing of the transaction is inter alia subject to confirmatory due diligence of One and merger control clearance in the Republic of Macedonia, and is expected for Q1 2015.

One is the third largest mobile network operator in the Republic of Macedonia with a market share of 23.6% and a customer base of about 528,000 customers as of 31 December 2013. In 2013, One achieved revenues and EBITDA of approximately EUR 75.5 mn and EUR 14.4 mn respectively.

Telekom Austria Group has been offering mobile services in the Republic of Macedonia via its subsidiary Vip Operator since 2007. With the acquisition of blizoo Macedonia in July 2014, Telekom Austria Group now also offers fixed-line services in the Macedonian market.


Disclaimer for forward-looking statements:
This document contains forward-looking statements. These forward-looking statements are usually accompanied by words such as "believe", "intend", "anticipate", "plan", "expect" and similar expressions. Actual events may differ materially from those anticipated in these forward-looking statements as a result of a number of factors. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement. Neither A1 Telekom Austria Group nor any other person accepts any liability for any such forward-looking statements. A1 Telekom Austria Group will not update these forward-looking statements, whether due to changed factual circumstances, changes in assumptions or expectations. This report does not constitute a recommendation or invitation to purchase or sell securities of A1 Telekom Austria Group.

link Related