Sonera has converted its 22.5m shares in Aerial into 10.2m shares of Voicestream Wireless Corporation as the result of the recent merger. The shares hold an equivalent value of $1,120m.
ARC Associates ("ARC"), a specialist investment banking and advisory firm to the TMT, financial services and property sectors, acted as a financial advisor to Sonera.
This merger consolidates three of the four publicly traded U.S. GSM regional wireless operators into one company, as VoiceStream is also currently in the process of merging with Onmipoint Corporation. Sonera has agreed to invest an additional $230 million into Aerial prior to completion and will make a further $500 million investment in VoiceStream at the completion of the merger of VoiceStream and Onmipoint. As a result of these transactions, Sonera will covert an initial 18% shareholding in Aerial into 8% ownership of the newly enlarged VoiceStream.
In a separate transaction on 15 September 1999, Sonera completed the acquisition of Ericsson Inc.'s equivalent 9% shareholding in Powertel, Inc, the fourth publicly traded U.S.GSM wireless operator, for $123 million.
Commenting, John Allen the Chairman of ARC, "This series of transactions brings the disparate participants in the U.S. GSM market into a substantial new entity under Voicestream control. This will materially increase the competitive position of GSM in the U.S. and presents a strong platform for Sonera to transfer its world leading technology and skills".
Sonera is an international leader in mobile communications, mobile-based services and applications who employs more than 11,200 people. By combining its expertise in mobile communications, the Internet and service provision, Sonera aims to develop into a global communications operator and provider of transaction and content services.
ARC Associates is a specialist investment banking and advisory firm to the telecommunications, media, technology, financial services and property sectors.
Contact:
John Allen, Chairman
ARC Associates
+ 44 (0) 20 7614 4000