Business News

Axel Springer and Ringier AG combine activities in eastern Europe

Wednesday 24. March 2010 - Axel Springer AG, Berlin and Ringier AG, Zurich are combining their foreign business activities in eastern Europe and executed an agreement today to form a joint venture based in Zurich.

Axel Springer will contribute its
subsidiaries in Poland, the Czech Republic and Hungary to the joint
venture, and Ringier will contribute its activities in Serbia, Slovakia,
the Czech Republic and Hungary. In addition, Axel Springer will make a cash
contribution in an amount of EUR 50 million to the joint venture as well as
a compensation payment to Ringier in an amount of EUR 125 million. Each
party will hold a 50% stake in the joint venture, which will take the legal
form of a Swiss corporation. Pursuant to the agreements underlying the
transaction, the joint venture with revenues of EUR 414 million and an
EBITDA of approximately EUR 62 million on a pro forma 2009 basis will be
fully consolidated in the consolidated financial statements of Axel
Springer in accordance with the accounting principles of IFRS/IAS.

The transaction is subject to approval of the competent antitrust and media
authorities.