freenet AG (DB:FNTN) signed a contract to acquire 23.83% stake in Sunrise Communications Group AG (SWX:SRCG) from Mobile Challenger Group S.à r.l. for approximately CHF 780 million on March 17, 2016. Under the terms of the contract, freenet will acquire 10.7 million ordinary shares in Sunrise at CHF 72.95 per share. Next month, in addition to this, freenet AG is going to acquire a further stake of up to 330,183 shares, or 0.73% of the share capital, in Sunrise Communications Group AG under the same conditions. The transaction is being financed with borrowed capital. Christoph Vilanek, freenet AG's Chief Executive Officer as well as Joachim Preisig, Chief Financial Officer of freenet are to be represented on Sunrise Communications Group AG's Board of Directors. The transaction is expected to be completed soon. The investment is cash accretive for freenet.

Peter M. Haid, Sebastian Schmitz, Niko Schindler and Christian Gehrlein of Freitag & Co acted as financial advisors for freenet. Deutsche Bank acted as financial advisor for Mobile Challenger. Dieter Dubs, Thomas Rohde, Daniel Lehmann, Sora Meyer, Christian Moser, Laura Widmer, Jonas Bornhauser and Fabienne Walter of Bär & Karrer AG as well as Albrecht Conrad, Stefan Richter, Alf-Henrik Bischke, Nikolaus Vieten, Tim Schlösser, Alexander Bekier, Daniela Böning Johannes Holzwarth of Hengeler Mueller Partnerschaft von Rechtsanwälten mbB acted as legal advisors for freenet. Hans-Jakob Diem, Marcel Meinhardt, Patrick Schleiffer, Associates Mario Strebel and Andreas Hinsen of Lenz & Staehelin acted as legal advisor to Sunrise. UBS Group AG acted as financial advisor to Sunrise. Frank Laudenklos of Freshfields Bruckhaus Deringer acted as legal advisor for the banks. Claude Lambert, Flavio Romerio, Reto Heuberger, Georg Rauber, Karin Mattle, Anaïs Naescher, Daniel S. Weber and Dal Molin of Homburger acted as legal advisor for Mobile Challenger. Christopher Kellett, Lauren Harris, Liza Laube, Paul Bock, Clara Herrenschmidt and Dunja Damjanovic-Pralong of Clifford Chance LLP acted as legal advisor and Ernst & Young Luxembourg S.A. acted as the accountant to Mobile Challenger.