Tiscali to buy Pipex "broadband"

16 Jul

Posted by flicker as News , Tiscali

Tiscali buys Pipex English the broadband sector with 310 million.
The operation is possible with a credit line of EUR 650 million through its subsidiary Tiscali UK Holdings Ltd provided by the bank Intesa Sanpaolo and JP Morgan. Broadband and voice division of Pipex, with about one million active users, is by the Italian company Tiscali acquistataÂ was approximately 310 million euros and this move has been well seen by the exchange that has pushed the title Tiscali + 2.2%. The bag was in fact awarded the title positively welcoming it on his return to 15:30 after he was suspended this morning and the resumption of trading him to 2.2977 euros, an increase of 2.2%. By purchasing the broadband sector by Pipex, the Sardinian society extends its catchment area of telecommunications in Britain taking in 1.9 million broadband customers and estimates that the turnover in 2007 of this important sector of Pipex will be about 300 million pounds with a gross operating margin of approximately 20 million pounds. Users of Tiscali, the end of June were 3,300,000, of which 1.54 million broadband (with 181,000 in the new semester) and 790,000 direct access customers. The chief executive Tommaso Pompei said that "the transaction allows us to increase our market quotaÂ about 15% in the UK. Following the acquisition confirmed target net profit and cash generation for 2008 and it is expected that the ratio of net debt and EBITDA remains below three. " Tiscali said that the line of credit, Intesa Sanpaolo and JP Morgan will replace the current financial debt of the group "could be partly refinanced, according to market conditions through the use of debt instruments in the market for about 400 million more than that with the use of a capital increase up to 150 million euros expected the Shareholders' meeting called to approve the Tiscali prosssimo September. " Were released by Tiscali prelimnari data also show that the first half of 2007 gross operating profit of 60 million euros, representing an increase of 45% and revenues amounting to 393 million euros, 23% increase.