Stockholm-based Tele2 is selling its Swedish residential fixed-line assets to Norway’s Telenor in a SKr794m (US$124m) cash deal to focus on mobile services.
The deal for around 370,000 households connected to fibre and cable comprises an enterprise…
Stockholm-based Tele2 is selling its Swedish residential fixed-line assets to Norway’s Telenor in a SKr794m (US$124m) cash deal to focus on mobile services.
The deal for around 370,000 households connected to fibre and cable comprises an enterprise value of SKr775m (US$121m), plus SKr19m (US$3m) for associated equipment. It does not include fixed infrastructure targeting businesses.
The residential assets brought in around SKr530m (US$83m) in revenues last year. Of the customer base roughly 125,000 subscribe to fixed broadband, 75,000 to digital TV and 220,000 to cable TV.
Thomas Ekman, CEO of Tele2’s Swedish subsidiary, said: “By selling our residential cable and fibre operations, we clearly establish our position as a mobile operator with a strong focus on mobile services.
“Moreover, the gains from this transaction will enable us to invest further in our mobile network, which is the very backbone of our operations.”
Telenor said the deal, which will transfer 68 employees to the company, serves its commitment to fixed broadband and TV to provide “optimal connectivity” to high-capacity services.
Lars-Ake Norling, who heads the group’s Swedish unit, said: “This topic is priority for us and our new customers and employees will play a vital role in our business going forward.”
The acquisition is subject to approval from the local competition authority.
SEB is financially advising Tele2, while Telenor hired Stockholm-based JZ Capital for financial advice.
