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AltAssets is the private equity news and research service from Almeida Capital
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PRINT THIS PAGE Permira to sell debitel to freenet in €1.63bn deal28/04/2008. Source: AltAssets. 
Permira has agreed to sell German mobile service provider debitel to freenet, an entity listed on the German stock exchange, in a deal valued at €1.63bn. As consideration for the acquisition of debitel, freenet will issue 32 million new freenet shares (approximately 24.99 per cent after the capital increase, with a current market value of around €360m) and a long-term €132.5m interest-bearing loan note to Permira.
On a cash-free basis, the debitel Group will be acquired with financial liabilities of approximately €1.135bn.
The debitel Group has operations in both Germany (93 per cent of revenues) and the Netherlands (seven per cent of revenues). The Group comprises debitel AG, TALKLINE GmbH and _dug telecom ag.
Permira originally acquired debitel in June 2004.
Dr Jörg Rockenhäuser, managing partner of Permira Beteiligungsberatung, said, 'The development of the debitel Group is a success story for the company and for the Permira funds. Its growth and combination of service provision and retail have helped the company become one of the major players in the mobile market. The combination of debitel Group with freenet AG follows a clear industry logic - together, debitel and freenet are on eye level with the big mobile operators.'
Permira has agreed to a lock-up for 100 per cent of the new shares until the end of the Annual General Meeting 2008 and for 60 per cent of the new shares until the end of the Annual General Meeting 2009, in any event not longer than 31 August 2009.
As a consequence of the transaction, freenet will not pay a dividend in 2008, according to a statement.
United Internet, a major shareholder of debitel, had also tried to acquire debitel.
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