Tele2, the Swedish OMX listed telco, intends to acquire Network Norway in a transaction valuing the company at SEK 1.7bn (US$ 270m), Tele2 said in a stock exchange announcement. Network Norway’s three largest shareholders, Orkla ASA, Hafslund Venture…
Tele2, the Swedish OMX listed telco, intends to acquire Network Norway in a transaction valuing the company at SEK 1.7bn (US$ 270m), Tele2 said in a stock exchange announcement. Network Norway’s three largest shareholders, Orkla ASA, Hafslund Venture II AS and Katalysator Telekom AS, have already agreed to the deal.
These shareholders represent 66.65 percent of outstanding shares, 75.01 percent of the outstanding warrants and 67.76 percent of Network Norway’s fully diluted share capital, including warrants and options, the company said.
Tele2 will pay approximately SEK 890m (US$ 141.3m) in cash for the Network Norway shares and warrants held by the shareholders. Financial advise to Tele2 was provided by Morgan Stanley, Norwegian law firm Kvale acted as legal adviser and Deloitte advised on accounting and tax aspects.
Tele2 will make an offer to all remaining shareholders in Network Norway on the same economic terms as those agreed with the three main investors. A Tele2 spokesperson said that closure is expected in autumn this year, and is conditional on receiving acceptances representing more than 90 percent of the total outstanding shares.
Network Norway is Tele2’s 50/50 joint venture partner in Mobile Norway, the company established to roll out the third mobile network in Norway, operating 900 MHz and 2100 MHz licenses in the country. In 2010, Network Norway reported net revenues of approximately SEK 2bn (US$ 317.6m) and EBITDA of approximately SEK 22m (US$ 3.5m) excluding one off-items. The company had a customer base of 485,000 at the end of 2010. .
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