Put companies on watchlist
freenet AG
ISIN: DE000A0Z2ZZ5
WKN: A0Z2ZZ
About
Company Snapshot
New: Enable Investor Alerts
Be informed about new publications
New: AI Factsheet

Corporate News meets AI! 
Content analysis and summary

EN GIF 300X250

freenet AG · ISIN: DE000A0Z2ZZ5 · EQS - Company News (41 News)
Country: Germany · Primary market: Germany · EQS NID: 1149430
20 November 2020 06:00AM

freenet AG: freenet AG repays debts of 610.0 million euros after sale of Sunrise shares


DGAP-News: freenet AG / Key word(s): Miscellaneous
freenet AG: freenet AG repays debts of 610.0 million euros after sale of Sunrise shares

20.11.2020 / 06:00
The issuer is solely responsible for the content of this announcement.


freenet AG repays debts of 610.0 million euros after sale of Sunrise shares

- Proceeds of around CHF 1.2 billion from the sold Sunrise shares received on 11 November 2020

- Significant reduction of leverage ratio1 to around 1.7x EBITDA

- Early repayment of the outstanding bank loan of 610.0 million euros

Büdelsdorf, 20 November 2020 - freenet AG [ISIN DE000A0Z2ZZ5] is today repaying the
syndicated bank loan of 610.0 million euros taken out to finance its equity stake in the Swiss telecommunications provider Sunrise Communications Group AG (Sunrise) acquired in 2016. The most recent average interest rate of the loan amounted to 1.6 per cent.

The funds for the repayment of the bullet loan derive from the sale of the Sunrise shares held by freenet AG to the US cable group Liberty Global, which had offered CHF 110 per Sunrise share in a public tender offer in August 2020. Through the complete sale of the total of 11,051,578 shares, freenet AG received Swiss francs equivalent to approximately 1.1 billion euros in cash on 11 November 2020.

"The sale of the Sunrise shares strengthens freenet AG's capital base in the long term. The resulting reduction in debt, together with the optimized maturity structure of other financial liabilities in a challenging environment, makes the balance sheet future-proof and increases the financial flexibility." explains Ingo Arnold, CFO of the freenet AG.

Thus, freenet AG stands by its promise to use the proceeds from the sale of its Sunrise investment primarily to repay bank liabilities. The company plans to repay further 200 million euros of financial debt by March 2021 at the latest. The remaining proceeds are planned to be reinvested in the business, utilized to the benefit of freenet shareholders and/ or used for further smaller debt repayments.

Together with the early refinancing of maturing promissory notes in the current fiscal year, the debt situation of freenet AG has thus eased considerably. As a result, the leverage ratio1 was reduced from 4.8 at the end of 2019 to currently around 1.7.

******************************
1 Leverage ratio as of 30 September 2020 less cash from the sale of Sunrise shares (11,051,578 shares).

******************************
freenet Group
Investor Relations & ESG

Deelbögenkamp 4
22297 Hamburg
Phone: +49 40 / 513 06 778
Fax: +49 40 / 513 06 970
Mail: ir@freenet.ag

Further information at http://www.freenet-group.de/investor-relations.



20.11.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de


Language: English
Company: freenet AG
Hollerstrasse 126
24782 Buedelsdorf
Germany
Phone: +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
Indices: MDAX, TecDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 1149430

 
End of News DGAP News Service

1149430  20.11.2020 

fncls.ssp?fn=show_t_gif&application_id=1149430&application_name=news&site_id=boersengefluester_html
Visual performance / price development - freenet AG
Smart analysis and research tools can be found here.

This publication was provided by our content partner EQS3.

EQS Newswire
via EQS - Newsfeed
EQS Group AG ©2024
(DGAP)
Contact:
Karlstraße 47 D-80333 München
+49 (0) 89 444 430-000

 

SMART * AD
EN GIF 970X250

P R O D U C T   S U G G E S T I O N S

The information presented here has been provided by our content partner EQS-Group. The originator of the news is the respective issuer, the company relating to the news, a publication service provider (press or information agency) which uses the distribution service of EQS to transmit company news to shareholders, investors, investors or interested parties. The original publications and other company-relevant information can be found at eqs-news.com.


The information you can access does not constitute investment advice. The presentation of our cooperation partners, where the implementation of investment decisions would be possible depending on the individual risk profile, is solely at the discretion of the person using the service. We only present companies of which we are convinced that the range of services and customer service will satisfy discerning investors.

If you are considering leverage products, familiarise yourself with the typical characteristics of the financial instruments beforehand. Take the time to determine the risk content of the planned investment before making an investment decision. Bear in mind that a total loss cannot be ruled out with leverage products.

For newcomers to the subject, we offer various options in both the training and the tools section, through which you can train theoretical knowledge and practical experience and thus improve your skills. The offer ranges from participation in webinars to personal mentoring. The range is continuously being expanded.


1 Lab features are usually functionalities that emerge from the think tank of the investor community. In the early stages, these are experimental functionalities whose development process is largely determined by use and the resulting feedback from the community. When integrating external services or functionalities, the functionality can only be guaranteed to the extent that the individual process elements, such as interfaces, interact with each other.