Sweden’s Tele2 AB has agreed to sell its Norwegian business ‘Tele2 Norway’ to TeliaSonera for an Enterprise Value of SEK 5.1 billion, equivalent to a cash value of SEK 5.3 billion. The transaction follows Tele2’s strategic review of its Norwegian business prompted by changes to the structure of the Norwegian market as a result of the license auction in December 2013.
Mats Granryd, President and CEO of Tele2 AB, commented: “Since we formed Tele2 Norway in 1995 we have built a successful mobile business of 1.2 million customers. We are proud to have strong brand names, an effective organisation, and talented employees. However, the competitive constraints we faced without resources on the multiband frequency required us to evaluate different options for our Norwegian businesses. Whilst we have not been able to complete our originally desired strategy, the proposed deal is good for our customers, shareholders and for Tele2 as a whole. This is an attractive transaction at a good valuation and it enhances our opportunities to challenge and take new steps on other markets.”
The transaction is subject to regulatory approval from the Norwegian Competition Authority which is anticipated at the latest first quarter of 2015.