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February 7, 2003 — (WEB HOST INDUSTRY REVIEW) — France Telecom subsidiary Wanadoo (Wanadoo.com) announced on Friday that it has withdrawn from the Belgian market, disposing of its Belgian operation, Wanadoo Belgium, by selling it to Tiscali.
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The value of the transaction, says Wanadoo, is 9.5 million euros, to be paid through newly-issued Tiscali shares. The capital increase will be discussed at the next Tiscali shareholders meeting, which is scheduled to occur before the end of April. There will be no lock up or selling restrictions on the shares.
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Wanadoo says its decision to withdraw is in line with the company’s strategy of being one of the top three players in every market it chooses to offer its services. The company says its key goal is to become one fo the most profitable Internet companies in Europe, and has seen considerable success in France.
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According to Wanadoo, the operation will allow the company to improve EBITDA and free cash flow for 2003.
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Wanadoo Belgium NV is a Belgian ISP and portal with about 85,000 active customers, of which 25,000 are ADSL subscribers. The deal also includes the company’s 15 employees. The sale will not affect the company’s customers.
