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Freenet AG, DE000A1KQXU0

freenet AG welcomes ISS' recommendation that Sunrise shareholders should vote AGAINST the proposed acquisition of UPC Switzerland

11.10.2019 - 14:53:24

freenet AG welcomes ISS' recommendation that Sunrise shareholders should vote AGAINST the proposed acquisition of UPC Switzerland. freenet AG welcomes ISS' recommendation that Sunrise shareholders 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.

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.

**********************************

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

Zusatzmaterial zur Meldung:

Dokument: http://n.eqs.com/c/fncls.ssp?u=MSLVHVNSTG

Dokumenttitel: freenet AG welcomes ISS recommendation

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 News/Finanznachrichten und Pressemitteilungen.

Medienarchiv unter http://www.dgap.de

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

889111 11.10.2019

°

@ dpa.de