Finland’s competition regulator has approved Elisa’s €100m fixed line assets acquisition after the telco agreed to sell overlapping parts of its network in the east of the country.
Elisa said it will divest overlapping consumer business broadband…
Finland’s competition regulator has approved Elisa’s €100m fixed line assets acquisition after the telco agreed to sell overlapping parts of its network in the east of the country.
Elisa said it will divest overlapping consumer business broadband networks and fibre connections, as well as around 3,000 customer agreements, in Joensuu, Kontiolahti and Outokumpu.
CFO Jari Kinnunen told TelecomFinance that there are several interested parties for the assets, which represent around 2,500 of the 70,000 broadband lines it will gain from the deal.
With approval from the Finnish Competition and Consumer Authority (FCCA), the telco said it will complete the acquisition on 30 April, bringing roughly €10m in synergies likely to be realised in 2014.
The deal sees Elisa buy Finnish conglomerate PPO’s telecoms and IT businesses, as well as stakes in two fixed network operators: Kymen Puhelin and Telekarelia.
PPO, which is being wholly acquired by Elisa, will receive €96m in cash and €5m in stock, equating to roughly 300,000 shares or 0.2% of those outstanding.
Under the deal Elisa will also hold stakes of 46% and 67% in Kymen Puhelin and Telekarelia, respectively.
