Competition and Consumer Authority has approved Elisa’s PPO acquisition
ELISA STOCK EXCHANGE RELEASE 25 APRIL 2013 9.00 am
Finnish Competition and Consumer Authority (FCCA) has approved the transaction, in which Elisa buys entire share capital of company containing fixed-line operator PPO'S Telecom and IT operations. The acquisition also includes the PPO's holdings of Kymen Puhelin Oy and Telekarelia Oy.
The transaction will be completed by 30 April 2013 and acquired companies will be consolidated into Elisa's financial statements starting from 1 May 2013.
FCCA set as a condition for the acquisition that the overlapping consumer business broadband networks and fiber-optic connections, as well as the related approximately 3,000 customer agreements to be divested in Joensuu, Kontiolahti and Outokumpu areas in eastern Finland.
As part of the transaction Elisa carries out a share issue based on Elisa's Board's decision where Co-operative PPO is to describe 303,599 Elisa shares held by Elisa.
The acquisition is in line with Elisa's strategy and has a positive financial effect. In 2012 revenue of the acquired companies totaled EUR 100 million of which EUR 7 million was household appliance business and EBITDA of approximately EUR 23 million. Elisa's preliminary assessment for the PPO's synergy benefits is approximately EUR 10 million, and it will mostly be realized in 2014.
Elisa starts the integration work after FCCA decision and will update the financial impact of the acquisition for the year 2013 and the years to come at the time of Elisa's second quarter results announcement.
ELISA
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