Mobistar has decided to conditionally waive a debt of 30 million euro owed by his subsidiary Orange S.A. in Luxembourg. Mobistar has also reversed certain provisions on the investment deduction for sustainable investments. The two decisions result in a decrease in tax costs and a 14 million euro improvement of the consolidated net result for 2010. The most recent guidance for the consolidated net result do not take this positive impact into account. Finally, Mobistar’s Board of Directors has approved the re-financing of the long-term credit facility for an amount of 450 million euro.
In order to optimise the balance sheet structure of his subsidiary Orange S.A. in Luxembourg, Mobistar has decided to conditionally waive the debt of 30 million euro owed by Orange S.A. This decision follows a positive opinion of the “Dienst Voorafgaande Beslissingen in fiscale zaken / Service des Décisions Anticipées en matière fiscale”. This debt waiver results in an extraordinary write-off for Mobistar S.A. and an extraordinary result for Orange S.A. (Luxembourg). Thanks to this rearrangement, Mobistar’s subsidiary in Luxembourg strengthens its balance sheet structure and can move ahead with its growth strategy.
Mobistar also reversed certain provisions on the investment deduction for sustainable investments, since it obtained the necessary tax certificates for the financial years 2007, 2008 and 2009.
Both elements increase the consolidated net profit by 14 million euro for the financial year 2010 by lowering the consolidated tax cost. This positive impact was not taken into consideration in the consolidated net result guidance (between 225 and 245 million euro) as presented with the half-year results in July 2010.
Mobistar’s Board of Directors has also approved the re-financing of one of its credit facilities, with expiry date of 31/12/2010. The new credit facility, with expiry date of 31/12/2015, amounts to 450 million euro with an interest rate of EURIBOR + 65 Bps. The agreement strengthens the long-term financing of Mobistar’s growth activities.