FREENET AG should vote AGAINST the proposed acquisition of UPC Switzerland
DGAP-News: freenet AG / Schlagwort(e): Stellungnahme
freenet AG welcomes ISS' recommendation that Sunrise shareholders should vote
AGAINST the proposed acquisition of UPC Switzerland (News mit Zusatzmaterial)
11.10.2019 / 14:51
Für den Inhalt der Mitteilung ist der Emittent / Herausgeber verantwortlich.
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freenet AG welcomes ISS' recommendation that Sunrise shareholders should vote
AGAINST the proposed acquisition of UPC Switzerland
Büdelsdorf, 11 October 2019 - freenet AG ("freenet") [ISIN DE000A0Z2ZZ5]
welcomes the recommendation from Institutional Shareholder Services ("ISS"),
the leading independent proxy advisory firm, that shareholders should vote
AGAINST the proposed capital increase and the acquisition of UPC Switzerland
("UPC") by Sunrise Communication Group AG ("Sunrise").
freenet has previously voiced its concerns about the all-cash structure of the
proposed UPC acquisition to the Board of Directors of Sunrise from the outset,
and has remained consistent in its view throughout. The proposed transaction is
expensive and given the cable industry's as well as UPC's challenges, Sunrise
shareholders will pay too much for UPC. It will destroy shareholder value. The
proposed acquisition of UPC is clearly not in the best interests of Sunrise and
its shareholders and therefore should be rejected at the EGM on 23 October
2019.
freenet is pleased that ISS as an independent body agrees with the views
freenet has expressed about the proposed acquisition, which freenet believes
would result in significant value destruction for all existing Sunrise
shareholders.
Key Quotes from the ISS Report:
- "The main point of contention in this deal is valuation. [.] Our valuation
analysis suggests a fair value range of CHF 4.6-5.2 billion (Enterprise Value)
for UPC [.]. The transaction consideration of CHF 6.3 billion appears excessive
considering UPC's operational issue."
- "Sunrise appears to be overpaying for assets in a transaction that appears to
have debatable long-term strategic merit."
- "[.] the benefits of the proposed deal are less obvious, as cable's
competitiveness vis-à-vis fibre and 5G is questionable."
- "The initial market reaction on announcement was decidedly negative, [.] such
a reaction is arguably not atypical for a deal of this size. The clear pattern
and magnitude of the share price [.] is more unusual."
For the reasons outlined above and in a recent freenet letter to Sunrise
shareholders, freenet reiterates its intention to vote AGAINST the proposed
acquisition and the corresponding capital increase at the EGM on 23 October
2019.
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Investor Relations Contact:
freenet Aktiengesellschaft
Investor Relations
Deelbögenkamp 4c
22297 Hamburg
Phone: +49 (0) 40 / 513 06 778
Fax: + 49 (0) 40 / 513 06 970
Email: ir@freenet.ag
www.freenet-group.de
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Zusatzmaterial zur Meldung:
Dokument: http://n.eqs.com/c/fncls.ssp?u=MSLVHVNSTG
Dokumenttitel: freenet AG welcomes ISS recommendation
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11.10.2019 Veröffentlichung einer Corporate News/Finanznachricht, übermittelt
durch DGAP - ein Service der EQS Group AG.
Für den Inhalt der Mitteilung ist der Emittent / Herausgeber verantwortlich.
Die DGAP Distributionsservices umfassen gesetzliche Meldepflichten, Corporate
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Sprache: Deutsch
Unternehmen: freenet AG
Hollerstraße 126
24782 Büdelsdorf
Deutschland
Telefon: +49 (0)40 51306-778
Fax: +49 (0)40 51306-970
E-Mail: ir@freenet.ag
Internet: www.freenet-group.de
ISIN: DE000A0Z2ZZ5, DE000A1KQXU0
WKN: A0Z2ZZ , A1KQXU
Indizes: MDAX, TecDAX
Börsen: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in
Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart,
Tradegate Exchange
EQS News ID: 889111
Ende der Mitteilung DGAP News-Service
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889111 11.10.2019
