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28. July 2021 | Ad Hoc

CANCOM SE: CANCOM divests business activities in the UK and Ireland and achieves book gain of around EUR 225 million

Munich, Germany, 28 July 2021 – The Executive Board of CANCOM SE today signed a definitive agreement regarding the sale of the subsidiary CANCOM Ltd. to Telefónica TECH. The transaction follows a strategic review announced on 25 May 2021. As a result, CANCOM is divesting its entire business activities in the United Kingdom and Ireland. The transaction values CANCOM Ltd. at an Enterprise Value of close to EUR 400 million, which corresponds to a transaction multiple of 15.8x (Enterprise Value/EBITDA 2020A). CANCOM will realise a book gain of around EUR 225 million through the transaction, which will be included in CANCOM Group’s net profit for 2021. Upon completion of the transaction, CANCOM SE will receive cash proceeds of around EUR 390 million.

The Executive Board of CANCOM SE expects the transaction to be completed within the third quarter of this year. CANCOM intends to reinvest the proceeds predominantly in the acquisition of companies in its core regions Germany, Austria and Switzerland.

As a result of the transaction, CANCOM Ltd. will be reclassified as discontinued operations in CANCOM Group’s financial reporting. Accordingly, the earnings figures are adjusted for the earnings contributions of CANCOM Ltd. for the current year and the financial year 2020. Based on the new adjusted comparative figures for 2020, the Executive Board of CANCOM SE confirms the forecast for CANCOM Group published in the 2020 annual report.

Notifying company:
CANCOM SE, Erika-Mann-Strasse 69, 80636 Munich, Germany
ISIN DE0005419105, Frankfurt Stock Exchange (MDAX, TecDAX, Prime Standard)

Contact / Notifying person:
Sebastian Bucher, Manager Investor Relations
+49 (0)89 540545193
ed.mo1709061388cnac@1709061388rehcu1709061388b.nai1709061388tsabe1709061388s1709061388

Note on alternative performance measures (APM):
Enterprise Value (EV): Value of the company. Corresponds (simplified) to the sum of the market value of equity and net financial liabilities.

EBITDA and EBITA: for definition see CANCOM SE Annual Report 2020 page 16.