Download Press Release Agreement for the sale of Hellas Sat €208 million

Press Release
Agreement for the sale of Hellas Sat
 €208 million inflow for ΟΤΕ
 Sovereign rights of Greece and Cyprus safeguarded
Athens, February 7 2013
OTE announces the signing of an agreement to sell its 99.05% stake in Hellas Sat
which manages the HellasSat2 satellite, to Arabsat, the leading satellite services
provider in the Middle East and Africa and one of the world’s top satellite operators.
OTE will receive total proceeds of €208 million from the sale of its share in Hellas Sat
representing 99.05% of:
• the value of Hellas Sat, amounting to €157 million, which corresponds to 7
times the EBITDA of Hellas Sat for 2012, and
• the cash held by Hellas Sat on the date of completion of the transaction,
estimated at €53.4 million.
In addition, OTE will receive €7 million as dividends.
OTE’s Chairman and CEO, Mr. Michael Tsamaz, noted: "We achieved a significant
agreement, which ensures the best possible and advantageous terms while adding
value to all shareholders. The Greek and Cyprus governments partner with a
reputable operator, who can undertake the necessary investments to retain the
sovereign rights of Greece and Cyprus in space and safeguard their position as
space-faring nations. Hellas Sat is being sold to a leading satellite communications
operator with substantial growth prospects and with a keen interest to develop
further its presence in the economies of Greece and Cyprus. OTE divests Hellas Sat
at a satisfactory price, allowing us to focus on our core business."
The transaction is expected to be completed in Q2 2013 after all necessary
procedures have been finalized and is subject to approval by the competent
authorities.
The Hellenic Aerospace Industry (HAI), one of the current minority shareholders of
Hellas Sat, remains in the new shareholding structure of the company, along with its
preemption rights as per the Articles of Association of Hellas Sat.
The buyer is Arabsat Cyprus Ltd, a 100% subsidiary of Arab Satellite
Communications Organization. Arabsat is one of the leading providers of satellite
services worldwide. Having launched 15 satellites in its history, Arabsat currently
operates six spacecrafts, offering the most extensive satellite coverage in the Middle
East and Africa, while it is in a rapid expansionary course aiming to launch three
"sixth generation" satellites. With a revenue growth of 24%, ArabSat was the fastest
growing satellite services provider in the world in 2011.
Barclays acted as OTE’s financial advisor.
NOTE: This announcement is done by The Hellenic Telecommunications Organization SA (OTE SA), as
“Regulated information” in accordance with Law 3556/2007, 1/434/03.07.2007 Decision of the Hellenic
Capital Market Commission, article 13 of Law 3340/2005 and 3/347/12.07.2005 Decision of the Hellenic
Capital Market Commission.
For more information on Arabsat kindly visit www.arabsat.com
About Hellas Sat
Hellas Sat was founded in 2001 and is the exclusive manager of the Greek and Cypriot
satellite Hellas-Sat 2. Hellas Sat 2 is one of the most powerful satellites with wide European
coverage and was successfully launched in May 2003. Apart from Europe, the satellite Hellas
Sat 2 covers the Middle East and South Africa. It has over 100 customers in 26 countries,
which are active in the covered areas by offering a wide range of satellite services, including
satellite television, news coverage, satellite internet and digital satellite services, enhancing
strategically the orbital position of 39 degrees East, to which approximately 2.5 million
antennae of subscribers are facing today. Hellas Sat’s commitment is the constant provision
of comprehensive, reliable and top quality satellite services. The company employs 65
scientists in Greece and Cyprus, and the satellite is fully controlled by TT&C stations in
Greece and Cyprus. Hellas Sat 2012 revenues amounted to €31 million.