Joint Reasoned Statement of the Management Board and Supervisory Board
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Mandatory Publication pursuant to Sections 1 para. 3 sent. 1 no. 2 lit. a, 34, 27, para. 3 sent. 1 and Section 14 para. 3 sent. 1 of the German Securities Acquisition and Takeover Act (Wertpapiererwerbs- und Übernahmegesetz) Joint Reasoned Statement of the Management Board and Supervisory Board of Tele Columbus AG Kaiserin-Augusta Allee 108 10553 Berlin Germany on the Voluntary Public Takeover Offer (Cash Offer pursuant to Section 29 of the German Securities Acquisition and Takeo- ver Act) of Kublai GmbH Thurn- und Taxis-Platz 6 60313 Frankfurt am Main Germany to the shareholders of Tele Columbus AG Tele Columbus Shares: ISIN DE000TCAG172 Tendered Tele Columbus Shares: ISIN DE000TCAG1V0 TABLE OF CONTENTS 1 GENERAL INFORMATION ON THIS JOINT REASONED STATEMENT 1 1.1 Legal Basis of this Reasoned Statement 2 1.2 Factual Basis of this Reasoned Statement 2 1.3 Publication of this Reasoned Statement and Additional Reasoned Statements on Amendments to the Offer 3 1.4 Statement of the Works Council 3 1.5 Personal Responsibility of the Tele Columbus Shareholders 4 2 INFORMATION ABOUT THE COMPANY AND THE TELE COLUMBUS GROUP 5 2.1 Legal Basis; Listing 5 2.2 Share Capital 6 2.3 Business Operations and Strategic Focus of Tele Columbus 6 2.4 Management Board and Supervisory Board of Tele Columbus 7 2.5 Shareholder Structure 8 2.6 Overview of the Tele Columbus Group 8 3 INFORMATION ABOUT THE BIDDER 8 3.1 Overview of the Bidder 8 3.2 Overview of the Business Operations of Morgan Stanley Infrastructure Partners 9 3.3 Group Structure 9 3.4 Persons Acting Jointly with the Bidder within the Meaning of Section 2 Para. 5 WpÜG 11 3.5 Tele Columbus Shares Held by the Bidder or Persons Acting Jointly with the Bidder within the Meaning of Section 2 Para. 5 WpÜG, or Their Respective Subsidiaries, and Voting Rights Attributable to These Persons 12 3.6 Disclosures Concerning Securities Transactions; Irrevocable Undertaking 12 4 INFORMATION ABOUT THE OFFER 13 4.1 Background of the Offer 13 4.2 Authoritative Applicability of the Offer Document 14 4.3 Implementation of the Offer 15 4.4 Subject Matter of the Offer and Offer Price 15 4.5 Acceptance Period 16 4.6 Closing Conditions 16 4.7 Regulatory Clearances 18 4.8 Acceptance and Settlement of the Offer 18 4.9 Financing of the Offer 18 5 TYPE AND AMOUNT OF CONSIDERATION 19 5.1 Type and Amount of Consideration 19 5.2 Statutory Minimum Price 19 5.3 Assessment of the Fairness of the Consideration 20 5.4 Fairness Opinion by ValueTrust 26 5.5 Fairness Opinion by Rothschild & Co 27 5.6 Overall Assessment of the Fairness of the Consideration 28 6 OBJECTIVES AND INTENTIONS PURSUED BY THE BIDDER AS WELL AS THE ASSESSMENT OF THESE OBJECTIVES AND INTENTIONS BY THE MANAGEMENT BOARD AND SUPERVISORY BOARD 28 6.1 Summary of the Bidder's Statements regarding the Background of the Offer and its Intentions 29 6.2 Assessment of the Bidder's Intentions and the Expected Consequences for Tele Columbus 31 7 IMPACT ON TELE COLUMBUS SHAREHOLDERS 37 7.1 Possible Effects of Default of the Minimum Acceptance Threshold 37 7.2 Possible Effects of Accepting the Offer 38 7.3 Possible Effects of Non-Acceptance of the Successful Offer 39 8 INTERESTS OF THE MEMBERS OF THE MANAGEMENT BOARD AND SUPERVISORY BOARD 41 9 INTENTION TO ACCEPT THE OFFER 42 10 FINAL ASSESSMENT 42 DEFINED TERMS Adjusted Analyst Price Targets ........................... 23 Rights Offering Backstop..................................... 12 Bidder .................................................................... 1 Rocket Internet ..................................................... 12 BNP Paribas ......................................................... 18 Rothschild & Co .................................................. 20 Business Day ......................................................... 2 Rothschild & Co Fairness Opinion ...................... 26 CET ....................................................................... 2 Shareholder Loan Facility Agreement ................. 13 Closing Conditions .............................................. 15 Statement ............................................................... 1 Company................................................................ 1 Stock Market Multiples ........................................ 24 DCGK .................................................................. 30 Subsidiaries ............................................................ 2 EUR ....................................................................... 2 Supervisory Board ................................................. 1 Fairness Opinions ................................................ 27 Tele Columbus ....................................................... 1 Fiber Champion Strategy ....................................... 7 Tele Columbus Debt Instruments......................... 13 Hilbert Management .............................................. 9 Tele Columbus Group ............................................ 1 Investment Agreement ......................................... 13 Tele Columbus Share ............................................. 1 Irrevocable Undertaking ...................................... 12 Tele Columbus Shareholder ................................... 1 LTM ..................................................................... 24 Tele Columbus Shareholders ................................. 1 Management Board................................................ 1 Tele Columbus Shares ........................................... 1 Minimum Acceptance Threshold......................... 16 Three-Month Average Price ................................. 19 Morgan Stanley ..................................................... 8 Trading Day ........................................................... 2 Morgan Stanley Controlling Persons ................... 11 Transaction Agreement .......................................... 9 Morgan Stanley Group .......................................... 8 Transaction Multiples .......................................... 25 MSIP ...................................................................... 8 United Internet ....................................................... 8 Offer ...................................................................... 1 United Internet Controlling Persons..................... 10 Offer Consideration ............................................. 15 United Internet Investments Holding ..................... 9 Offer Document ..................................................... 1 United States .......................................................... 4 Offer Price ........................................................... 15 US Shareholders..................................................... 4 OpFCF ................................................................. 24 ValueTrust Fairness Opinion ............................... 26 Other Controlling Persons ................................... 11 WpÜG .................................................................... 1 Overall Transaction ............................................. 13 WpÜG-AngebVO ................................................ 14 LIST OF APPENDICES Annex 1 Statement of the Competent Works Council Annex 1 Persons acting jointly with Tele Columbus AG (Subsidiaries of Tele Columbus AG) Annex 2 ValueTrust Fairness Opinion Annex 3 Rothschild & Co. Fairness Opinion 1 GENERAL INFORMATION ON THIS JOINT REASONED STATEMENT Pursuant to Section 34, Section 29, Section 14 para. 2 sent. 1, para. 3 sent. 1 of the German Securities Acquisition and Takeover Act (Wertpapiererwerbs- und Übernahmegesetz) (the "WpÜG"), Kublai GmbH, a limited liability company (Ge- sellschaft mit beschränkter Haftung) founded under German law, having its registered office in Frankfurt am Main and its business address at Thurn- und Taxis-Platz 6, 60313 Frankfurt am Main, Germany, and registered with the commercial register of the local court (Amtsgericht) Frankfurt am Main under docket number HRB 120105 (the "Bidder"), submitted to the shareholders of Tele Columbus AG, a stock corpora- tion (Aktiengesellschaft) founded under German law, having its registered office in Berlin and its business address at Kaiserin-Augusta-Allee 108, 10553 Berlin, Ger- many, and registered with the commercial register of the local court (Amtsgericht) Charlottenburg under docket number HRB 161349 B ("Tele Columbus", or the "Company", and, together with its subsidiaries, the "Tele Columbus Group"), a vol- untary public takeover offer (the "Offer") by publishing the offer document within the meaning of Section 11 WpÜG (the "Offer Document") on 1 February 2021. The Offer is directed to all shareholders of the Company (the "Tele Columbus Share- holders", individually the "Tele Columbus Shareholder") and refers to the acquisi- tion of all no-par value registered shares held by them (ISIN DE000TCAG172) that are not directly held by the Bidder, each with a notional interest in the share capital of EUR 1.00 and each with all ancillary rights at the time of the execution of the Offer (particularly the respective dividend entitlement) (individually a "Tele Columbus Share" and collectively the "Tele Columbus Shares"), in exchange for payment of EUR 3.25 per Tele Columbus Share (Cash Offer). The Management Board of the Company (the "Management Board") forwarded the Offer Document to the Supervisory Board of the Company (the "Supervisory Board") and the group works council of Tele Columbus, in its role as the responsible works council, on 1 February 2021 upon its submission