O2 and DSGi finalise agreement regarding the Link

O2 and DSG international plc (DSGi) today confirm the sale of DSGi’s 60% equity interest in The Link Stores Limited to O2 (UK) Limited. Under the terms of the agreement, DSGi will receive approximately £30 million in cash for its interest in The Link. For a transitional period DSGi will assist O2 in managing the Link stores for which DSGi will receive a management fee.   Under the terms of the agreement, DSGi may receive further consideration of up to £2.5 million subject to certain targets being met by 31 March 2007 and will also receive certain ongoing billing revenues until 31 December 2007.  DSGi will retain the Linkplan insurance business.   Completion of the transaction, which is subject to approval by the relevant competition authorities, is anticipated to occur within 4 months.   Matthew Key, Chief Executive of O2 UK, said: “Acquiring The Link is great for O2 and great for our customers.  In several independent surveys, customers have voted O2 the number one mobile retailer on the high street. This agreement will allow us to accelerate our O2 store rollout plans. By having more stores closer to more customers, we can interact with them more and thus provide an even better service.”   John Clare, DSGi Group Chief Executive, said: “I am pleased to confirm the sale of our sixty percent stake in The Link to O2.  The Link has delivered significant shareholder value since we created the business in 1994, much credit for which is due to The Link’s staff.  We believe that it is now the appropriate time to divest our interest in The Link, as we intensify our focus on our core market-leading operations in multi-channel electricals and computing retailing across Europe.”