Acquisition of Eesti Digitaaltelevisiooni AS


AS Starman acquires from AS Levira 34% of the shares of Eesti
Digitaaltelevisiooni AS, a provider of digital terrestrial television service
ZUUMtv, and becomes the sole owner of the company. 
The acquisition deal is in accordance with the shareholders agreement of Eesti
Digitaaltelevisiooni AS, according to which AS Levira has an option for selling
its stake in the company. The price of the transaction is approximately 42
million kroons (2.67 million Euros), which is to be paid out in the near
future. 
The acquisition enables AS Starman to focus on development, sales and customer
care of digital terrestrial television services. At the present moment, ZUUMtv
provides services to 16,500 customers, but company estimates to triple the
customer number within 2 years. 
In earlier financial reports the Management Board of AS Starman has estimated
that the option will be realized considerably later. However, the Management
Board sees the earlier realization as a positive development as the cost of the
acquisition is lower than was expected previously. 
The transition is not a transaction with related party as neither Supervisory
Board nor Management Board of AS Starman or Eesti Digitaaltelevisiooni AS have
personal interest in the transaction. 

ZUUMtv is a terrestrial digital television service which delivers 27 Estonian
and international TV channels trough a traditional TV-antenna. Compared to
analogue transmission, digital TV provides significantly higher image and audio
quality, as well as electronic program guide (EPG) and a language selection
option for audio and subtitles. At present, the DTT network covers 97% of
Estonian households. 
ZUUMtv is provided by Eesti Digitaaltelevisiooni AS, established in the end of
2006. Up to the present, 66% of Eesti Digitaaltelevisiooni AS is owned by the
Estonia largest cable television company Starman and 34% by the largest
television broadcasting and wireless broadband internet provider Levira.
Technical television transmission for ZUUMtv is handled by Levira, Starman is
responsible for sale and customer care of ZUUMtv.