KKR acquires SBB/Telemach Group

Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, "KKR") today announced the signing of a definitive agreement under which funds advised or controlled by KKR are acquiring the SBB/Telemach Group ("SBB/Telemach Group") from Mid Europa Partners. The executive management team led by founder Dragan ?olak will remain in place and retain a substantial stake in SBB/Telemach Group.

Financial terms of the transaction were not disclosed.

SBB/Telemach Group is the leading Pay-TV (cable, DTH) and broadband operator in South-East Europe ("SEE"), with a population of over 20m in SBB/Telemach Group's current operating perimeter. SBB/Telemach Group operates in Serbia, Slovenia, Bosnia, Croatia, Montenegro and Macedonia and has around 1.7 million cable and satellite TV, broadband, fixed and mobile customers.

Henrik Kraft, Member of KKR and head of KKR's telecoms and technology team in Europe said: "We look forward to partnering with Dragan ?olak and his team. They have built a strong and sophisticated TV and communications platform and we are excited to support the company in its further growth."

Dragan ?olak, Founder and Executive Chairman of the SBB-Telemach Group, said: "I look forward to the partnership with KKR. Their sector expertise and experience and global resources and network will be a great asset for our firm in this next stage of development."

Johannes Huth, Member of KKR and Head of European operations stated: "KKR has built a successful investment track record in the telecoms and media sector. I am confident that the investment in the SBB/Telemach Group will be equally successful."

Commenting on the agreements, KKR's Co-Founder and Co-CEO Henry Kravis said: "This is our first direct investment in Southern Eastern Europe. It adds to our investments in more than 40 European companies across 12 countries and it is a sign of our confidence in the prospects of SBB/Telemach Group, led by Dragan and his talented team, and in the region."

The transaction is subject to customary approvals and is expected to close around year-end 2013.

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About KKR

Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading global investment firm with $83.5 billion in assets under management as of June 30, 2013. With offices around the world, KKR manages assets through a variety of investment funds and accounts covering multiple asset classes. KKR seeks to create value by bringing operational expertise to its portfolio companies and through active oversight and monitoring of its investments. KKR complements its investment expertise and strengthens interactions with fund investors through its client relationships and capital markets platform. KKR & Co L.P. is publicly traded on the New York Stock Exchange (NYSE: KKR), and "KKR," as used in this release, includes its subsidiaries, their managed investment funds and accounts, and/or their affiliated investment vehicles, as appropriate.

About SBB/Telemach Group

SBB and Telemach form the leading regional Pay TV platforms in South East Europe, offering cable television, Internet, telephony and DTH services to approximately 1.5 million subscribers across the markets of former Yugoslavia. With unmatched reach via cable and DTH in the region and OTT world-wide TV platform, the group companies have established the reputation for the most attractive content on their respective markets available across all devices and formats. Good deals and bundles are supported with an innovative and reliable technology. The group companies also offer data and voice services for small, medium and large companies.

KKR
Kristi Huller
+1 (212) 230 9722
Kristi.huller@kkr.com
or
Finsbury
Michael Turner / Nina Suter
+44 207 251 3801
michael.turner@rlmfinsbury.com