Expanding the existing footprint

||

As part of its M&A strategy, Telekom Austria Group also considers expanding outside of its existing footprint. Any such moves are strictly vetted with regard to their strategic fit as well as their standalone value and the potential for synergies and diversification benefits. The overall objective of maintaining the current Baa2/BBB rating stands at the core of any decisions about M&A activities.

Examination of potentially value-accretive M&A

Woman with calculator (Illustration )
Prioritisation

1. In-market consolidation
2. Convergence
3. Growth in the CEE region

Selection criteria and valuation
When it comes to assessing individual opportunities, management diligently analyses all target companies as to their likely contribution to the achievement of the Group’s overall strategic goals. The potential for synergies and full operational control are two necessary preconditions. Clearly defined assessment and selection criteria are then applied, including discounted cash flow valuation with country-specific weighted average costs of capital, as well as trading and transaction multiples for reference purposes.

||