MUNICH (01/26/2000) - To finance further growth, Deutsche Telekom AG in April plans to take public its ISP (Internet service provider) T-Online International AG, and is considering similar moves for its mobile phone subsidiary.
Deutsche Telekom will offer about 10 percent, or 100 million of T-Online's shares to the public, but will maintain a majority holding in the ISP, Deutsche Telekom spokesman Hans Ehnert confirmed today.
The shares will be listed on the German stock exchange, and possibly on other exchanges outside Germany, although that has not yet been decided, Ehnert said.
Other moves planned for financing future growth are a possible initial public offering (IPO) of T-Mobil, the carrier's mobile phone subsidiary, Deutsche Telekom said in a statement yesterday.
German development bank Kreditanstalt für Wiederaufbau (KFW) also plans to sell some of its shares in Deutsche Telekom, the carrier said in its statement. That will happen at the earliest by June of this year. The German government owns roughly 66 percent of Deutsche Telekom, 22 percent of which is through the government-owned KFW.
Wolfgang Keuntje, current head of T-Online, will continue as chief executive officer after the T-Online IPO, and the other board members will also remain the same, Deutsche Telekom said.
T-Online has seen rapid growth in Germany, doubling its subscriber base over the past year to 4.2 million users. Plans to internationalize the ISP have proceeded more slowly, however. Although T-Online last year announced plans to launch non-German portals in other countries, until now it has only launched sites in Germany, Austria, and Switzerland. [See "Germany's T-Online Goes International," Jan. 27, 1999.] Deutsche Telekom, in Bonn, can be reached at +49-228-181-4949, or on the Web at http://www.telekom.de.