QSC extends shareholding in Broadnet to more than 90 percent and plans further integration steps
Cologne, November 13, 2006. QSC AG, Cologne, has signed an agreement with institutional investors to acquire an additional 24.8 percent stake in Broadnet AG (ISIN DE0005490866) in exchange for new QSC shares. After the closing of the transaction, QSC AG will hold 92.0 percent of the share capital of Broadnet AG.
The agreement enables QSC AG in the near term to implement additional corporate resolutions aiming at a stronger integration of Broadnet AG into the QSC group.
Depending on meeting agreed conditions, the purchase price amounts to a minimum of 1.0542 and a maximum of 1.23 QSC shares for each Broadnet share. As a result of the agreement, the management and the supervisory board of QSC AG have resolved a capital increase by € 4,920,000 by issuing 4,920,000 new shares against contribution in kind using authorized capital and excluding statutory subscription rights.
Cologne-based QSC AG (QSC) is a nationwide telecommunication provider with its own DSL network, offering businesses and premium residential customers a comprehensive portfolio of high-quality broadband communication options. QSC implements complete enterprise networks (VPNs), operates voice and data services and provides leased lines in a wide variety of bandwidths for business customers. Residential customers benefit from high-quality DSL connections, complete with VoIP applications. In addition, QSC utilizes its own network as the basis for providing high-level upstream products to carriers, Internet service providers (ISPs) as well as strong consumer marketing partners. Following the acquisition of a majority interest in Broadnet AG, QSC has additionally enjoyed access to a microwave network in 42 regions of Germany. QSC operates on a nearly nationwide scale, together with Broadnet AG connects over 160 German cities over its own broadband network and currently employs a workforce of some 650 people. In fiscal 2005, the company generated revenues of € 194.4 million, and following the acquisition of a majority stake in Broadnet AG is forecasting consolidated annual revenues of over € 265 million for 2006. QSC is listed on the TecDAX.