Western Wireless Corporation (NASDAQ:WWCA) today announced that its subsidiary, Western Wireless International Holding Corporation, has entered into a definitive agreement to sell its Irish business, Meteor Mobile Communications Limited ("Meteor"), to a subsidiary of eircom Group plc, the Irish fixed-line telecommunications operator ("eircom"), for approximately $500 million at current exchange rates. Completion of the transaction is conditioned, among other things, on approval by eircom's shareholders of the transaction and of an eircom share issuance pursuant to a rights offering; closing of the rights offering, the proceeds of which would be used to pay the purchase price; and approval from Irish regulatory authorities. Assuming receipt of these approvals and completion of the rights offering, the transaction is expected to close in October 2005. Deutsche Bank Securities Inc. served as financial advisor to Western Wireless.
Western Wireless disclosed during its May 4, 2005 earnings conference call that the company had been contacted by a number of financial and strategic parties about the possible sale of international assets and expected to receive proposals on some of the international properties. The process of receiving, reviewing and negotiating proposals for other international assets is continuing, most significantly with respect to Western Wireless' Austrian business, tele.ring, for which Western Wireless has received conditional and non-binding bids for a price of over $1.5 billion. There can be no assurance that a sale of the Austrian business will result at that or any other price.
Western Wireless shareholders will be voting at the company's July 29, 2005 annual meeting on the pending merger of Western Wireless with and into a wholly-owned subsidiary of Alltel. As previously announced by Alltel, all regulatory approvals have been obtained. If approved by the shareholders, it is currently expected that the merger filings will be completed on July 29 and August 1, 2005 would be the effective date of the closing.
An agreement in principle has been reached to settle the proposed class action lawsuit which was filed against Western Wireless, Alltel and Western Wireless directors. The settlement will be subject to court approval. The settlement agreement will not involve material payments by the defendants.
About Western Wireless Corporation
Western Wireless Corporation, headquartered in Bellevue, Washington, serves over 1.3 million subscribers in 19 western states under the Cellular One(R) and Western Wireless(R) brand names. Western Wireless and its subsidiary, Western Wireless International Holding Corporation, serve over 1.5 million customers in six international markets, and own a minority interest in a seventh market.
