TELESTE CORPORATION INSIDER INFORMATION 2 October 2020 AT 22:00 EET
TELESTE HAS SIGNED AN AGREEMENT TO SELL ITS SERVICES BUSINESS IN GERMANY TO CIRCET
Teleste has signed an settlement to promote its companies enterprise in Germany to Circet Deutschland GmbH, an organization of the Circet Group. Circet is the main European telecom community service supplier with actions in France, Eire, the UK, Spain, Germany and Morocco. Circet offers a variety of development, set up and upkeep companies for mounted and cellular networks. In 2019, the income of Circet was EUR 1.4 billion and the group employed 6300 staff.
Teleste revealed a inventory change launch on 14 Might 2020, in keeping with which as a part of its revised technique and concentrate on know-how enterprise operations and the companies of upper added worth supporting them, the corporate has determined to divest its companies enterprise in Germany. Teleste has categorized the companies enterprise of the Germany-based Cableway corporations in keeping with IFRS 5 “Non-current Property Held for Sale and Discontinued Operations” and has reported it in keeping with the usual as from its first quarter 2020 interim report.
The preliminary internet buy value is EUR 8.0 million, which shall be paid in money on the closing. The ultimate buy value relies upon on the web working capital and the web debt on the time limit. The closing is topic to approval of the Federal Cartel Workplace in Germany. We estimate the closing to happen throughout the fourth quarter of 2020.
By divesting the German companies enterprise Teleste will safeguard its functionality to spend money on progress areas of the know-how and the product companies and enhance the monetary place. Closing of the share buy settlement is estimated to extend monetary property of Teleste Group roughly by EUR 7 million and enhance the fairness ratio by 1 % level. Teleste will acknowledge an estimated impairment loss on disposal of the discontinued operations of EUR 6-8 million in its third quarter 2020 interim report. The impairment shall be acknowledged within the internet results of the discontinued operations within the revenue and loss assertion. The extraordinary loss will considerably lower dad or mum firm fairness, which is estimated to be EUR 27 million after the divestment.
In 2019, the web gross sales of the German companies operations, categorized in keeping with IFRS 5 customary, was EUR 70.1 million, 29.8% of the consolidated internet gross sales of Teleste Group. The web end result was EUR -1.3 million in 2019. On the finish of 2019 the Cableway corporations employed roughly 470 staff.
Board of Administrators
CEO Jukka Rinnevaara, cellphone +358 2 2605 611