Finnish telco Elisa has acquired Osuuskunta PPO’s telecoms business and its stakes in two fixed network operators for €101m.
The Finnish group will receive a consideration made up of €96m in cash and €5m in Elisa stock, equating to roughly…
Finnish telco Elisa has acquired Osuuskunta PPO’s telecoms business and its stakes in two fixed network operators for €101m.
The Finnish group will receive a consideration made up of €96m in cash and €5m in Elisa stock, equating to roughly 300,000 shares or 0.2% of Elisa’s stock.
After completion of the deal, Elisa will wholly own the telco PPO-Yhtiöt Oy, as well as 46% and 67% stakes in fixed operators Kymen Puhelin Oy and Telekarelia Oy respectively.
In a statement, Elisa said the three businesses had combined revenues of €100m in 2011 and EBITDA of €22m. Together they have 70,000 broadband customers, 54,000 fixed-line customers and 35,000 pay-TV subscribers.
The statement added that the deal would expand Elisa’s customer base and provide annual synergy benefits of €10m, expected to be realised from 2014.
The transaction is subject to the approval of the Finnish competition authorities and is expected to close during Q1 2013.
In its Q3 results Elisa reported €1.16bn in revenues and EBITDA of €377m for the year to date. It declared net debt of €874m and has a net debt/EBITDA ratio of 1.7.
