Subsequent Events


In October 2014 Telekom Austria Group reached an agreement with Telekom Slovenije Group to merge its subsidiaries Vip operator and One, both operating in the Republic of Macedonia. Telekom Austria Group will hold 55% and have sole control over the newly created company whereas Telekom Slovenije Group will hold 45%. Furthermore, the agreement also includes call and put options for the exit of Telekom Slovenije Group within three years of the closing of the merger. The closing of the merger is subject to merger control clearance in the Republic of Macedonia, which is expected for the first quarter 2015. One is the third largest mobile network operator in the Republic of Macedonia and achieved revenues of approximately EUR 75.5 mn and EBITDA of approximately EUR 14.4 mn in 2013.

Since 31 December 2014, the Belarusian Rouble lost approximately 20% of its value compared to the Euro. The effect of the devaluation on the inflation rate in Belarus remains to be seen (see Note (1)).

On 21 January 2015, a condition of the agreement subject to conditions precedent between Telekom Slovenije and Si.mobil was fulfilled. Thereupon, Si.mobil withdrew its lawsuit and already received a first payment of EUR 20 mn (see Note (34)).

In its judgement of 11 November 2014, the European Court of Justice (ECJ) decided at the request of the Austrian Administrative Court that the Austrian law determining the reference date for salary increments for Austrian civil servants is not in conformity with European Union law (see Note (22)). To compensate the resulting burden on the federal budget the National Assembly passed a law on 21 January 2015, which has not yet entered into force as it still needs to be enacted by the Austrian Federal Assembly and published in the Austrian Federal Law Gazette. Telekom Austria Group will further examine the accounting of this fact based on the judgement by the Austrian Administrative Court as well as the assessment of the existing wording of the law regarding EU conformity.