| Esprit Telecom Group PLC | |||
| Ticker: | ESPRY | Minerva House, Valpy Street | |
| Exchange: | NASDAQ-National Market | Reading, UK RG1 1AR | |
| Industry: | Service (SIC Code 4812) | ||
| Type of Shares: | American Depositary Receipts | Filing Date: | 2/3/97 | |
| U.S. Shares: | 3,325,000 | Offer Date: | 2/27/97 | |
| Non-U.S. Shares: | 1,425,000 | Filing Range: | $13.00 - $15.00 | |
| Primary Shares: | 4,750,000 | Offer Price: | $12.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.84 | |
| Offering Amount: | $66,500,000 | Selling: | $0.50 | |
| Expenses: | $2,739,000 | Reallowance: | $0.10 | |
| Shares Out After: | 17,150,107 |
| Manager | Tier | Phone |
| Lehman Brothers Incorporated | Lead Manager | (212) 526-8100 |
| Donaldson, Lufkin & Jenrette Securities Corp. | Co-manager | (212) 371-0641 |
| HSBC James Capel | Co-manager | (212) 825-6688 |
| Issuer's Law Firm: | Shearman & Sterling |
| Bank's Law Firm: | Simpson, Thacher & Bartlett |
| Auditor: | Price Waterhouse |
| Registrar/Transfer Agent: | Bank of New York |
Dollar amounts in U.S. millions except for per share data | |||||
| 3 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 9/30/96 | 12/31/96 | 12/31/96 | |||
| Revenue: | $40.07 | $13.90 | Assets: | $38.71 | |
| Net Income: | -$8.58 | -$3.00 | Curr Assets: | ||
| EPS: | -$0.63 | -$0.21 | Liabilities: | $27.67 | |
| Prior EPS: | $1.66 | Curr Liabilities: | |||
| Cash Flow/Oper: | -$3.62 | Equity: | $11.04 | ||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company provides international and national telecommunications services to the United Kingdom, Netherlands, Spain, France, Germany, Belgium, Italy and Ireland. The company is a rapidly growing European telecommunications company, providing high quality, competitively priced, international and national long distance telecommunications services. The company commenced operations in June 1992 with the objective of competing in the liberalizing European telecommunications market and established an early presence in several key European markets. Today, the company provides telecommunications services in 14 major cities in the United Kingdom, the Netherlands, Spain, France, Germany, Belgium, Italy and Ireland. Esprit intends to continue to focus on providing telecommunications services across national borders to a pan-European market. By capitalizing on its established market position and experience, Esprit's strategic objective is to become one of Europe's largest independent telecommunications service providers. |
| Competition |
| Until recently, the telecommunications market in each EU Member State has been dominated by the national PTO, and, in the United Kingdom, by an additional dominant provider. Since the implementation of a series of EU derivatives beginning in 1990, the EU Member States have begun to liberalize their respective telecommunications markets, thus permitting alternative telecommunications companies to provide telecommunications services. Liberalization has coincided with technological innovation to create an increasingly competitive market, characterized by still-dominant PTOs as well as an increasing number of new market entrants. |
| Business Plan |
| The company's strategic objective is to capitalize on the opportunities that it believes are available in the liberalizing European telecommunications market and to become one of Europe's largest independent telecommunications service providers, offering a choice of high quality, low cost telecommunications services across Europe. In pursuit of this objective, the company seeks to build on a number of competitive strengths which it believes distinguish the company from its competitors. 1) European focus and early market presence, 2) internally generated growth, 3) pan-European integrated network with local market expertise, 4) target medium- to large-sized businesses and organizations, 5) customer value and service, 6) growing product and services portfolio. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to redeem preference shares outstanding, for capital expenditures related to the expansion and development of the Esprit Network and the opening of new offices, to fund operating losses, working capital expenditures and other general corporate purposes, as well as possible investments, acquisitions and strategic alliances that are complementary to the company's operations. |