Swisscom has agreed to buy a 75% stake in Telecom Liechtenstein with the intention of integrating it into the Swiss business.
The Swiss telco announced it has signed a declaration of intent with the Principality of Liechtenstein to acquire the shares,…
Swisscom has agreed to buy a 75% stake in Telecom Liechtenstein with the intention of integrating it into the Swiss business.
The Swiss telco announced it has signed a declaration of intent with the Principality of Liechtenstein to acquire the shares, but did not disclose a deal value.
Swisscom plans to take over the target’s telecoms business as well as infrastructure currently belonging to the Liechtenstein Power Company (LKW). Telecom Liechtenstein’s cable network activities and Swiss unit Deep will not be included in the deal.
Swisscom, which is based in Worblaufen near Bern, already has a licence to provide mobile services in Liechtenstein.
The telco said it considers the deal a long-term investment, adding that it has the support of both the Liechtenstein government and the Swiss Federal Council.
“The business is now being scrutinised in detail and the transfer contracts will then be negotiated,” Swisscom stated, adding that contracts are set to be signed by the end of the year.
Liechtenstein’s parliament is expected to decide upon the necessary legislative changes for the deal toward the end of the year.
Swisscom, in which the Swiss Confederation has a 56.94% stake, priced a CHF500m (US$523.3m) 12-year bond in mid-June.
