24.11.2014 – 20:01

Telekom Austria AG

EANS-Adhoc: Telekom Austria AG
Telekom Austria Group successfully completes capital increase (Ad hoc)

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  ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
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  announcement.
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Capital measures/Stock Activity
24.11.2014


NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO
THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN. 

Vienna, 24 November 2014: Today Telekom Austria Group announces the end of its
rights offering subscription period and completion of the capital increase it
announced on 7 November 2014. The number of shares of Telekom Austria Group will
increase by 221.5 million, from 443.0 million to 664.5 million. The net proceeds
of the transaction will amount to approx. EUR 997 million.

Based on preliminary results of the subscription period that ends today at 24.00
CET, approx. 25.5 million new shares were subscribed for at a price of EUR 4.57
per new share by free float investors. Including the commitments of the core
shareholders América Móvil (including Carso Telecom) and ÖIAG the total take-up
will be approximately 99.7%. Given the high take-up during the subscription
period, there will be no rump placement. The approx. 0.3% remaining shares not
subscribed for in the subscription period or committed to by the core
shareholders will be taken-up by Deutsche Bank and sold in the market.

América Móvil (including Carso Telecom) will subscribe for approx. 132.2 million
new shares according to its approx. 264.5 million subscription rights. ÖIAG will
subscribe for approx. 63.0 million new shares so that its participation in the
share capital of Telekom Austria after the capital increase corresponds as
closely as possible to its current pro-rata participation in Telekom Austria
(approximately 28.42%).

Trading of the new shares on the Vienna Stock Exchange is expected to commence
on 27 November 2014. Each of Telekom Austria, América Móvil (including Carso
Telecom) and ÖIAG has committed itself to a lock-up period of six months
following the first day of trading of the new shares on the Vienna Stock
Exchange.

Telekom Austria intends to use the net proceeds of the capital increase to
re-establish its target capital structure and maintain a credit rating of at
least BBB (stable) by Standard & Poor's. This will allow Telekom Austria Group
to pursue strategic investment priorities with the aim to strengthen the Telekom
Austria Group's operational performance and to return to a sustainable growth
profile within the stated sound financial framework. In particular, the capital
increase will allow Telekom Austria Group to implement an accelerated roll-out
of its fibre infrastructure during the years 2015 - 2018 in combination with
latest available technologies to ensure CAPEX efficiency. Telekom Austria Group
thus aims to meet increasing demand for high bandwidth services and safeguard
the Group's network quality leadership in the Austria segment. Furthermore,
Telekom Austria Group will be able to finance value-accretive M&A opportunities
that strengthen its operational strategy, thereby maintaining the following
priorities: (i) in-market consolidation to strengthen existing operations; (ii)
the continued pursuit of Telekom Austria Group's convergence strategy to
diversify in markets that are currently mobile-only and to enhance existing
convergent operations; and (iii) expansion via new operations.

For further information about the capital increase please see the following
link: 
http://www.telekomaustria.com/en/ir/14887

This document does not constitute an offer of securities, nor a solicitation for
an offer of securities nor marketing or sales activity for such securities in
countries where such an offer or solicitation for an offer is subject to legal
restrictions. This document must not be used for such an offer or such marketing
activities. Under http://www.telekomaustria.com/en/ir/14887, a prospectus will
be published in accordance with the Austrian Capital Market Act
(Kapitalmarktgesetz).
This document is not for distribution, directly or indirectly, in or into the
United States (including its territories and possessions, any State of the
United States and the District of Columbia). This document does not constitute
or form a part of any offer or solicitation to purchase securities in the United
States. The securities mentioned herein have not been, and will not be,
registered under the United States Securities Act of 1933, as amended, (the
"Securities Act") and may not be offered or sold in the United States, except
pursuant to an exemption from the registration requirements of the Securities
Act. There will be no public offer of securities in the United States. 
This communication is directed only at (i) persons who are outside the United
Kingdom or (ii) persons who have professional experience in matters relating to
investments falling within Article 19(5) of the Financial Services and Markets
Act 2000 (Financial Promotion) Order 2005 (the "Order") and (iii) high net worth
entities, and other persons to whom it may lawfully be communicated, falling
within Article 49(2) of the Order (all such persons together being referred to
as "relevant persons"). Any investment activity to which this communication
relates will only be available to and will only be engaged with, relevant
persons. Any person who is not a relevant person should not act or rely on this
document or any of its contents.

Disclaimer for forward-looking statements: 
This document contains forward-looking statements. These forward-looking
statements are usually accompanied by words such as "believe", "intend",
"anticipate", "plan", "expect" and similar expressions. Actual events may differ
materially from those anticipated in these forward-looking statements as a
result of a number of factors. Forward-looking statements involve inherent risks
and uncertainties. A number of important factors could cause actual results or
outcomes to differ materially from those expressed in any forward-looking
statement. Neither Telekom Austria nor any other person accepts any liability
for any such forward-looking statements. Telekom Austria will not update these
forward-looking statements, whether due to changed factual circumstances,
changes in assumptions or expectations. This report does not constitute a
recommendation or invitation to purchase or sell securities of Telekom Austria.


Further inquiry note:
Matthias Stieber
Director Investor Relations
Tel.: +43 (0) 50 664 39126
mailto:matthias.stieber@telekomaustria.com

end of announcement                               euro adhoc 
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issuer:      Telekom Austria AG
             Lassallestrasse 9
             A-1020 Wien
mail:         investor.relations@telekomaustria.com
WWW:      www.telekomaustria.com/ir
sector:      Telecommunications
ISIN:        AT0000720008
indexes:     WBI, ATX Prime, ATX
stockmarkets: official market: Wien 
language:   English