2023-09-21 11:12:53
The radio tower business of Telekom Austria (TKA) AG, which was spun off into EuroTeleSites, will be listed in official trading on the Vienna Stock Exchange (Prime Market) from tomorrow, Friday. Telekom Austria shareholders also receive one share certificate in EuroTeleSites AG for every four shares. The TKA share will be discounted by the spin-off EuroTeleSites when the stock market opens tomorrow.
Since this is a spin-off without a capital increase, there is no procedure for determining the share issue price (bookbuilding). Instead, a reference price will be set for the EuroTeleSites share. The price is expected to be announced later today, Thursday. Since the announcement of the Funkturm subsidiary’s IPO at the end of June, Telekom Austria’s share price has risen by 12 percent to 7.59 euros. The ownership structure of EuroTeleSites corresponds to the parent company: The Mexican telecommunications company America Movil holds 56.55 percent, the state holding company ÖBAG has 28.42 percent of the shares and 15.03 percent is in free float.
By spinning off its radio tower business, the A1 Group will get rid of debts worth one billion euros in one fell swoop, which will be transferred from A1 to the new infrastructure company EuroTeleSites. The financing of EuroTeleSites is already in place, said Funkturm CEO Ivo Ivanovski to analysts at the Capital Markets Day at the beginning of September. 500 million euros come from a bond, plus a loan for 500 million euros and a credit line (RCF) for 75 million euros. The spin-off should be worthwhile because the infrastructure will increasingly be rented out to other mobile operators in addition to the A1 in the future.
According to the company, EuroTeleSites’ annual turnover currently amounts to over 230 million euros. “We expect revenue growth of 4 to 6 percent per year for the next few years,” said EuroTeleSites CFO Lars Mosdorf at the Capital Markets Day. Two-thirds of the growth will be driven by the anchor tenant A1 and the 5G expansion, which currently accounts for around half of A1’s infrastructure investments. Around 1,000 additional locations are planned. New radio towers would only be built if there were already contracts with future tenants.
A1 and EuroTeleSites will therefore remain closely linked to one another in the future. The contract for the use of the radio towers is generally unlimited, but can be terminated by A1 following the end of the 8th, 16th and 24th contract year. EuroTeleSites can only withdraw from the contract following 24 years at the earliest. Both contractual partners then have the right to exit at the end of each year, although this must be announced three years in advance. The rent can be increased by 85 percent of the price increase, although the increase is capped at 3 percent per year.
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