Elisa - Tender offer

Elisa acquires cable tv operator Starman's Estonian business

ELISA STOCK EXCHANGE RELEASE 13 DECEMBER 2016 AT 2:30 PM

Elisa and Starman’s owners, Polaris Invest and Com Holding have signed an
agreement in which Elisa acquires 100 per cent of AS Starman’s share capital.
The acquisition price is EUR 151 million and Elisa pays it in cash. This
acquisition has no impact on Elisa’s dividend payment capabilities nor profit
distribution policy. 

In 2015 Starman’s Estonia business’ revenue was EUR 37 million and EBITDA EUR
18 million. Number of personnel is c. 320. In the end of Q3 2016 the company
had approximately 122,000 cable TV subscriptions, 88,000 broadband
subscriptions, 60,000 digital terrestrial subscriptions and 30,000 telephony
subscriptions. 

Starman is number one in pay TV services and number two in fixed broadband
services in Estonia with market shares approximately 35 per cent and 20 per
cent, respectively. 

The transaction is consistent with Elisa’s strategy to strengthen its market
position in home markets. Annual synergies are estimated to be approximately
EUR 4-6 million in 2019. The deal is expected to have a positive impact on
earnings per share (EPS) already in 2017. The newly acquired business creates
new integrated operator, which enables Elisa to widen its customer base in
Estonia and expand the service offering to both Elisa and Starman customers. 

The transaction is subject to the approval of Estonian competition authorities
as well as other usual terms and conditions related to acquisitions. Elisa
estimates that the deal will be closed during the first quarter of 2017. 

Elisa will arrange a conference call on the subject for investors and analysts
today, on 13 December at 15:30 pm Finnish time (1:30 pm London time). The
conference call is a Skype meeting with number of +358 10 267 3000 Conference
ID 78777905 or with the link Join Skype Meeting (direct link
https://meet.elisa.fi/kati.norppa/T685D1PQ). Presentation material will be
available on www.elisa.com/investors. 


ELISA CORPORATION

Vesa Sahivirta
IR Director
tel. +358 10 262 3036

Additional information:

Mr. Jari Kinnunen, CFO, tel. +358 10 262 9510
Mr. Vesa Sahivirta, IR Director, tel. +358 10 262 3036

Distribution:

Nasdaq Helsinki
Principal media
www.elisa.com