Management Board of TP S.A. informs about signing a settlement in TP S.A vs. DPTG dispute
Warsaw, January 12, 2012
Pursuant to art. 56, clause 1, item 1 of the Law of July 29, 2005 on public offering and the conditions for introducing financial instruments to the organised trading system and on public companies (Journal of Laws of 2005, No. 184, item 1539 with amendments), the Management Board of Telekomunikacja Polska S.A. ("TP S.A", the "Company") informs about signing a settlement in Telekomunikacja Polska S.A vs. Danish Polish Telecommunications Group ("DPTG") dispute.
Compromise brings a definitive settlement in the TP S.A. vs. DPTG proceedings, totalling €550mn for the entire dispute.
The settlement should not have any impact on TP S.A.'s dividend and targeted benefits of its medium term action plan, as disclosed on February 23, 2010
acting in the best interest of the Company and its shareholders, on 12 January 2012 TP S.A.'s Management Board signed a settlement in the TP S.A. vs. DPTG dispute (described in TP S.A.'s financial statements and current reports). This compromise ends a dispute lasting from 2001 in relation to a contract signed in 1991.
According to the settlement, TP S.A. will pay DPTG a total of €550mn (approx. PLN 2,455mn) and DPTG will without any delay withdraw all its claims with regards to this long lasting dispute, including enforcement procedures regarding €396mn awarded by the Arbitration Tribunal in Vienna (Austria) for Phase 1 of the dispute, its approx. €320mn claim (including interest) submitted to the Arbitration Tribunal for Phase 2, as well as any other claims, damages or legal fees with relation to the legal actions taken by any of the sides. The amount will be transferred to DPTG in two payments; €275mn (approx. PLN 1,228mn) will be paid no later than January 13, 2012 and the remaining €275mn (approx. PLN 1,228mn) will be transferred as soon as DPTG withdraws all its motions in the ongoing enforcement proceedings.
The above-mentioned settlement will not materially impact TP S.A.'s EBITDA for 2011, as in the past the Company has made a risk provision for the dispute, totalling €542mn (approx. PLN 2.4bn); therefore only the PLN 36mn difference will be included in EBITDA for 2011. TP S.A.'s balance sheet will remain solid, as including this cash outflow, its pro-forma net gearing after hedging ratio will remain below 25% at the end of 2011.
The final settlement of this long lasting dispute should not have any impact on TP S.A.'s dividend and targeted benefits of the medium term action plan, as disclosed on February 23, 2010. TP Group's 2011 outlook and guidance realisation will not be affected, as it was given excluding any impact of claims and litigation.
France Telecom - Orange Investor Relations Team
Patrice Lambert - de Diesbach - Head of IR : +33 1 44 44 20 26 (p.lambert@orange.com)
Claire Roblet -IR Manager : + 33 1 44 44 21 11 (claire.roblet@orange.com)
Cionaith Cullen - IR Officer : +33 1 44 44 03 24 (cionaith.cullen@orange.com)
Anne-Laure Lahon - IR Officer : +33 1 44 44 98 65 (annelaure.lahon@orange.com)
Amélie Laroche-Truong - SRI & IR Officer : +33 1 44 44 05 79 (amelie.larochetruong@orange.com)
Mathieu Lemaire - IR Officer : +33 1 44 44 59 00 (mathieu.lemaire@orange.com)
Jérôme Blin - IR Officer (jerome.blin@orange.com)
Florent Razafi - IR Officer (florent.razafi@orange.com
Compromise brings a definitive settlement in the TP S.A. vs. DPTG proceedings, totalling €550mn for the entire dispute.
The settlement should not have any impact on TP S.A.'s dividend and targeted benefits of its medium term action plan, as disclosed on February 23, 2010
acting in the best interest of the Company and its shareholders, on 12 January 2012 TP S.A.'s Management Board signed a settlement in the TP S.A. vs. DPTG dispute (described in TP S.A.'s financial statements and current reports). This compromise ends a dispute lasting from 2001 in relation to a contract signed in 1991.
According to the settlement, TP S.A. will pay DPTG a total of €550mn (approx. PLN 2,455mn) and DPTG will without any delay withdraw all its claims with regards to this long lasting dispute, including enforcement procedures regarding €396mn awarded by the Arbitration Tribunal in Vienna (Austria) for Phase 1 of the dispute, its approx. €320mn claim (including interest) submitted to the Arbitration Tribunal for Phase 2, as well as any other claims, damages or legal fees with relation to the legal actions taken by any of the sides. The amount will be transferred to DPTG in two payments; €275mn (approx. PLN 1,228mn) will be paid no later than January 13, 2012 and the remaining €275mn (approx. PLN 1,228mn) will be transferred as soon as DPTG withdraws all its motions in the ongoing enforcement proceedings.
The above-mentioned settlement will not materially impact TP S.A.'s EBITDA for 2011, as in the past the Company has made a risk provision for the dispute, totalling €542mn (approx. PLN 2.4bn); therefore only the PLN 36mn difference will be included in EBITDA for 2011. TP S.A.'s balance sheet will remain solid, as including this cash outflow, its pro-forma net gearing after hedging ratio will remain below 25% at the end of 2011.
The final settlement of this long lasting dispute should not have any impact on TP S.A.'s dividend and targeted benefits of the medium term action plan, as disclosed on February 23, 2010. TP Group's 2011 outlook and guidance realisation will not be affected, as it was given excluding any impact of claims and litigation.
France Telecom - Orange Investor Relations Team
Patrice Lambert - de Diesbach - Head of IR : +33 1 44 44 20 26 (p.lambert@orange.com)
Claire Roblet -IR Manager : + 33 1 44 44 21 11 (claire.roblet@orange.com)
Cionaith Cullen - IR Officer : +33 1 44 44 03 24 (cionaith.cullen@orange.com)
Anne-Laure Lahon - IR Officer : +33 1 44 44 98 65 (annelaure.lahon@orange.com)
Amélie Laroche-Truong - SRI & IR Officer : +33 1 44 44 05 79 (amelie.larochetruong@orange.com)
Mathieu Lemaire - IR Officer : +33 1 44 44 59 00 (mathieu.lemaire@orange.com)
Jérôme Blin - IR Officer (jerome.blin@orange.com)
Florent Razafi - IR Officer (florent.razafi@orange.com
About Orange
France Telecom-Orange is one of the world’s leading telecommunications operators with 171,000 employees worldwide, including 105,000 employees in France, and sales of 10.9 billion euros in the first three months of 2012. Present in 33 countries, the Group had a customer base of 225 million customers at 31 March 2012, including 181 million customers under the Orange brand, the Group's single brand for internet, television and mobile services in the majority of countries where the company operates. At 31 March 2012, the Group had 166 million mobile customers and 15 million broadband internet (ADSL, fibre) customers worldwide. Orange is one of the main European operators for mobile and broadband internet services and, under the brand Orange Business Services, is one of the world leaders in providing telecommunication services to multinational companies.
With its industrial project, "conquests 2015", Orange is simultaneously addressing its employees, customers and shareholders, as well as the society in which the company operates, through a concrete set of action plans. These commitments are expressed through a new vision of human resources for employees; through the deployment of a network infrastructure upon which the Group will build its future growth; through the Group's ambition to offer a superior customer experience thanks in particular to improved quality of service; and through the acceleration of international development.
France Telecom (NYSE:FTE) is listed on Euronext Paris (compartment A) and on the New York Stock Exchange.
For more information (on the internet and on your mobile): www.orange.com, www.orange-business.com, www.orange-innovation.tv or to follow us on Twitter: @presseorange.
Orange and any other Orange product or service names included in this material are trade marks of Orange Brand Services Limited, Orange France or France Telecom.
With its industrial project, "conquests 2015", Orange is simultaneously addressing its employees, customers and shareholders, as well as the society in which the company operates, through a concrete set of action plans. These commitments are expressed through a new vision of human resources for employees; through the deployment of a network infrastructure upon which the Group will build its future growth; through the Group's ambition to offer a superior customer experience thanks in particular to improved quality of service; and through the acceleration of international development.
France Telecom (NYSE:FTE) is listed on Euronext Paris (compartment A) and on the New York Stock Exchange.
For more information (on the internet and on your mobile): www.orange.com, www.orange-business.com, www.orange-innovation.tv or to follow us on Twitter: @presseorange.
Orange and any other Orange product or service names included in this material are trade marks of Orange Brand Services Limited, Orange France or France Telecom.
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