A1 Telekom Austria Group has announced the spin-off of its tower business into a standalone company, EuroTeleSites. The company intends to list EuroTeleSites on the Official Market (Amtlicher Handel) of the Vienna Stock Exchange, with trading expected to commence next week, specifically on or about September 22, 2023, subject to the timely issuance of all necessary approvals.
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Shareholder Benefits
"Shareholders of Telekom Austria AG will receive one additional EuroTeleSites share for every four Telekom Austria shares held (the number of Telekom Austria shares held by each shareholder will remain unchanged by the spin-off)," noted A1 Telekom in an official statement on Tuesday.
In an extraordinary General Assembly held in August 2023, the shareholders of Telekom Austria Group approved the spin-off of the cell tower business to the newly founded EuroTeleSites. The tower business spin-off includes approximately 12,900 cell towers in Austria, Bulgaria, Croatia, Serbia, Slovenia, and Northern Macedonia.
In July 2023, America Movil increased its overall shareholding in Telekom Austria from 51 percent to 56.55 percent, as reported by TelecomTalk.
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Approvals for Listing
The completion of this spin-off and listing is contingent upon obtaining the necessary approvals, including the registration of EuroTeleSites in the companies register and approval of the listing prospectus by the Austrian Financial Market Authority.
At the time of the Tower company announcement, A1 Group stated, "We welcome this decision to spin off the passive infrastructure into a separate company. It offers strategically important perspectives and a long-term stable ownership structure. It will make our network rollout faster and more efficient, which will benefit our customers and the business location."
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A1 Telekom Austria Group is the European unit of America Movil and serves under the A1 brand to around 27 million customers in Austria, Belarus, Bulgaria, Croatia, Northern Macedonia, Serbia and Slovenia.
