TeliaSonera acquires Tele2’s Norwegian operations and accelerates nationwide 4G roll-out
ET | Source:Telia Company AB
TeliaSonera acquires Tele2’s operations in Norway at an enterprise value of SEK
5.1 billion on a cash and debt free basis. The company has also committed itself
to a 98 percent population coverage for 4G by 2016, two years ahead of its
The transaction will increase TeliaSonera’s mobile market share in Norway to
approximately 40 percent from 23 percent while the mobile subscription base will
increase to 2.7 million from 1.6 million. In order to show the benefit of
consolidation for the customer, TeliaSonera is accelerating the 4G roll-out to
reach 98 percent population coverage already by 2016 instead of 2018.
“I am delighted that we have reached an agreement to acquire Tele2 in Norway.
This is a great strategic fit for TeliaSonera and in line with our ambition to
strengthen our position in our core markets. At the same time it enables us to
both faster and further invest and deliver best in class services to the benefit
of Norwegian customers and society,” says Johan Dennelind, President and CEO.
The acqusition is estimated to incur integration costs of between SEK 250-450
million and investments estimated to SEK 350 million in order to handle the
increased traffic. Also expected are substantial cost synergies, estimated to at
least SEK 800 million annually from 2016.
“We look forward to welcoming Tele2’s staff and customers to NetCom and the
TeliaSonera family. The greater scale will improve our competitiveness and
ability to offer mobile internet services to enterprise customers and consumers
in the entire country, including the rural areas where large investments are
needed,” says August Baumann, head of TeliaSonera’s Norwegian operation NetCom.
Once the acquisition is completed Tele2’s customers will have access to a
nationwide 4G network which currently covers 3.2 million people and in 2016
virtually all Norwegians. TeliaSonera will continue to offer a variety of brands
on the Norwegian market, both premium and low cost brands.
The acquisition is subject to approval from the Norwegian Competition
Authorities and is expected to be finalized in the first quarter of 2015 at the
Analyst telephone conference at 08.30 am CET
TeliaSonera invites you to an analyst conference call with TeliaSonera’s
President and CEO Johan Dennelind and CFO Christian Luiga.
+44 (0) 1452 541003
About TeliaSonera Norway:
TeliaSonera operates under the brand names NetCom and Chess. In 2013, net sales
amounted to SEK 7,056 million and EBITDA, excluding non-recuring items, was SEK
2,144 million. The number of mobile subscriptions was 1,590,000 at the end of
the first quarter of 2014.
About Tele2 Norway:
Tele2 operates under the brand names Tele2, One-Call, My Call and Network
Norway. In 2013, net sales amounted to SEK 4,132 million and EBITDA was SEK 121
million. The number of mobile subscriptions was 1,133,000 and the number of
fixed subscriptions was 60,000 at the end of the first quarter of 2014.
TeliaSonera AB discloses the information provided herein pursuant to the Swedish
Securities Markets Act and/or the Swedish Financial Instrument Trading Act. The
information was submitted for publication at 07.00 a.m. CET on July 7, 2014.
For more information, please contact the TeliaSonera press office 46 771 77 58
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including future performance and other trend projections are forward-looking
statements. By their nature, forward-looking statements involve risk and
uncertainty because they relate to events and depend on circumstances that will
occur in the future. There can be no assurance that actual results will not
differ materially from those expressed or implied by these forward-looking
statements due to many factors, many of which are outside the control of
TeliaSonera provides network access and telecommunication services in the Nordic
and Baltic countries, the emerging markets of Eurasia, including Russia and
Turkey, and in Spain. TeliaSonera helps people and companies communicate in an
easy, efficient and environmentally friendly way. Our ambition is to be number
one or two in all our markets, providing the best customer experience, high
quality networks and cost efficient operations. TeliaSonera is also the leading
European wholesale provider with a wholly-owned international carrier network.
In 2013, net sales amounted to SEK 101.7 billion, EBITDA to SEK 35.6 billion and
earnings per share to SEK 3.46. The TeliaSonera share is listed on NASDAQ OMX
Stockholm and NASDAQ OMX Helsinki. Read more at
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