Electronics Production | December 18, 2007

Draka acquires full owership of Draka<br>Comteq from Alcatel-Lucent

The Netherland based Draka has reached agreement with France based Alcatel-Lucent on the acquisition of the outstanding 49.9% interest in Draka Comteq B.V. for € 209 million in cash.
Transaction is expected to have a positive impact on EPS in 2008 Refinancing of existing debt by new credit facility of € 625 million. Draka expects to achieve additional annual cost savings of around € 3 million from 2008 as a result of merging the two head offices.

Draka expects that the transaction, including anticipated additional cost savings and after financing costs, will have a limited positive impact on EPS in 2008. Draka secured a new revolving credit facility of € 625 million that will initially run for five years, with an option to extend for one year. Under this transaction, Draka acquires full ownership of Draka Comteq. Draka Comteq is a leader in the field of optical fibre and optical fibre cable, created on 1 July 2004 by combining the worldwide optical fibre and communication cable activities of Draka and Alcatel-Lucent.

New revolving credit facility Draka has contracted recently a revolving credit facility in various currencies of € 625 million with a syndicate of five relationship banks. This new revolving credit facility will initially run for five years, with an option to extend for one year. The new facility replaces the existing credit facility of € 370 million contracted in October 2005 and a subordinated loan of € 77.5 million.

Besides financing the takeover price of € 209 million for the interest of 49.9% in Draka Comteq, the facility will be used to support Draka's growth strategy. It is expected that the transaction with Alcatel-Lucent will be completed by the end of 2007.


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