EFTA00956807.pdf

From: Nicole Junkermann To: " <[email protected]> Subject: Re: Fw: Deal Poseidon Date: Mon, 18 Mar 2013 17:32:33 +0000 Are u investing? From: Jeffrey Epstein [mailto:[email protected]] Sent: Monday, March 18, 2013 06:23 PM To: Nicole Junkermann Subject: Re: Fw: Deal Poseidon Yes On Monday, March 18, 2013, Nicole Junkermann wrote: Are you aware of this deal? From: David Stern (mallto: Sent: Monday, March 18, 2013 06:03 PM To: Jong Mohaupt < Cc: Nicole Junkermann Subject: Deal Poseidon Jorg, I hope this mail finds you well. I am an active investor in a private equity fund that is finalising a very interesting US$ 1.2bn transaction. There is scope for co-investment of up to US$ 100m. Please see some points below. Is this something of interest? All the best, David • One of the world's largest private undersea cable systems (most systems are owned by consortia of telecom companies) providing connectivity between US-Europe-Middle East-Subcontinent-East Asia • Strategic asset to the Middle East — c. 40% of Middle East's Internet traffic and c. 25% of all voice and data traffic is carried on Poseidon • Play on exploding data traffic — broadband, internet video, 4G, teleconferencing (eg, Netflix outside US is carried on this system; Google and Facebook are customers) • Blue chip customers — major carriers (Etisalat, Du, Qtel, Omantel, Batelco, Mobilye, Vodafone, BT) and enterprises (Ernst & Young, Hilton Hotels, LVMH, Lloyds Bank) • Proprietary transaction —we are dealing principal-to-principal (no bankers/intermediaries); Seller's $7 bn of debt is main driver of (reluctant) disposal but they want to retain a 15% stake to participate in upside • Asset is only 10% utilised today — 90% of bandwidth available for sale (and more will be 'created' as electronics technology advances allowing more and more light to be pumped through and hence capacity to be unlocked in the same fiber system) • Cash generative — at least $150 million of free cash flow per year, providing yield (once debt has been paid down) EFTA00956807  • Very good entry price — at c. 5x ebitda — should be able to sell at a higher multiple once freed up from Seller (who suffers from a poor reputation) and positioned for growth • Batelco as our strategic partner provides deep industry knowledge and solid operating experience • Projected >3x returns in 4-5 years (c. 35%) The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of Jeffrey Epstein Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to [email protected], and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved EFTA00956808