FEBRUARY 18, 2013

FCO deems remedy package offered for Tele Columbus acquisition insufficient


  • Substantial network divestments as offered by Kabel Deutschland did not overcome Federal Cartel Office’s objections
  • Further remedies as required by the FCO commercially not reasonable
  • Prohibition of transaction expected
  • Focus on exploiting organic growth potential

The German Federal Cartel Office (‘FCO’) today informed Kabel Deutschland (‘The Company’) of its preliminary assessment on the remedy package offered on January 22, 2013. The FCO judges the proposed divestment of network assets as insufficient to overcome its concerns.

Kabel Deutschland offered the disposal of Tele Columbus networks in the cities of Berlin, Dresden and Cottbus. The FCO, however, requires the divestment of approximately 60% of the Tele Columbus networks in Eastern Germany – twice as many as offered by Kabel Deutschland.

The Company regrets the Cartel Office’s assessment. Kabel Deutschland’s remedy offer was far reaching and went to the commercial limit. The envisaged transaction would have benefited infrastructure competition as well as consumers. As a result of the envisaged acquisition, over 900 thousand households in Eastern Germany would have obtained first-time access to high speed internet over cable. In addition, Kabel Deutschland would have become active outside its current footprint by entering into competition for contracts with housing associations in North Rhine-Westphalia and Hesse.

Irrespective of today’s outcome on the Tele Columbus acquisition, Kabel Deutschland will continue to pursue its strong organic growth strategy focusing on Internet & Phone and Premium TV. The Company’s superior broadband infrastructure and products provide a unique basis for sustained growth over the coming years.

About Kabel Deutschland
Kabel Deutschland (KD), Germany’s largest cable operator, offers its customers digital, high definition (HD) and analog TV, Pay TV and DVR offerings, Video on Demand, broadband Internet (up to 100 Mbit/s) and fixed-line Phone services via cable as well as mobile services in cooperation with an industry partner. The publicly listed company (MDAX, MSCI Europe, Stoxx 600 Europe) operates cable networks in 13 German federal states and supplies its services to approximately 8.5 million connected households. As of November 1, 2012, Kabel Deutschland had approximately 3,500 employees. In fiscal year 2011/2012 (12 months ended March 31, 2012), the Company reported revenues of €1,700 million and an Adjusted EBITDA of €795 million.

Contact:

Kabel Deutschland Holding AG Investor Relations
Betastr. 6-8
85774 Unterfoehring
Germany
Elmar Baur
Direktor Investor Relations
+49 89 960 10 -187
elmar.baur(at)kabeldeutschland.de
Michael Frank
Senior Manager Investor Relations
+49 89 960 10 -142
michael.frank(at)kabeldeutschland.de
Eva Denker
Junior Managerin Investor Relations
+49 89 960 10 -151
eva.denker(at)kabeldeutschland.de
Astrid Adamietz
Assistentin Investor Relations
+49 89 960 10 -186
astrid.adamietz(at)kabeldeutschland.de

This Investor Relations release may contain forward-looking statements. These statements are based on management's current expectations or beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Although we believe that such forward-looking statements are reasonable, we cannot assure you that any forward-looking statements will prove to be correct. Such forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks and uncertainties, the forward- looking events and circumstances discussed in this Investor Relations release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on the forward-looking statements.

This Investor Relations release may contain references to certain non-GAAP financial measures, such as Adjusted EBITDA and Capex, and operating measures, such as RGUs, ARPU, Unique subscribers pro forma calculation. These supplemental financial and operating measures should not be viewed in isolation as alternatives to measures of Kabel Deutschland’s financial condition, results of operations or cash flows as presented in accordance with IFRS in its Consolidated Financial Statements. The non-GAAP financial and operating measures used by Kabel Deutschland may differ from, and not be comparable to, similarly titled measures used by other companies. For further information please see in particular the Footnotes in this Investor Relations release and the financial statements.

We disclaim any obligation to publicly update or revise any forward-looking statements or other information contained in this Investor Relations release. It is pointed out that the present Investor Relations release may be incomplete or condensed, and it may not contain all material information concerning Kabel Deutschland Holding AG or the Kabel Deutschland group.

Contact