REG-TeliaSonera AB Telia Company Divests Sergel to Marginalen <Origin Href="QuoteRef">TELIA.ST</Origin>

Telia ABAnnouncement

21/06/2016 07:30

      Telia Company Divests Sergel to Marginalen    
      TeliaSonera AB (OSE:TEL) (STO:TLSN) (HEX:TLS1V) (LSE:TEE) (Nasdaq:TLSN)    
      Telia Company has agreed to divest Sergel Group (Sergel), its Nordic       and Baltic credit management services (CMS) and debt purchase business,       to Marginalen AB and Marginalen Bank Bankaktiebolag (jointly       Marginalen) for SEK 2,070 million on a cash and debt free basis. The       proceeds will generate a positive net cash effect of approximately SEK       1,870 million and strengthen Telia Companys balance sheet. The       transaction is conditional on relevant regulatory approvals, from the       Swedish Financial Supervisory Authority as well as local Competition       Authorities. Closing of the transaction is expected to take place before       end of 2016.    
      Sergel has historically been the in-house collection unit of Telia       Company but has gradually expanded its strategic focus to also provide       CMS and debt purchase services to external customers. In 2015, Sergel       had revenues of around SEK 830 million and contributed with SEK 206       million to Telia Companys EBITDA excl. non-recurring items, reported       within Telia Companys Other Operations. In April, Telia Company       announced a strategic review of Sergel.    
      As Sergels services will remain to be of high importance to Telia       Company, Sergel has in connection with the transaction entered into a       new partnership agreement with Telia Company regarding delivery of CMS,       debt purchase and clearinghouse services by Sergel to Telia Company.    
      Telia Company is currently undergoing a great transformation. We are       focusing on our core business and are looking for opportunities close to       the core. Following this transaction, Sergel will be better equipped to       leverage on current business opportunities. I am satisfied that through       the partnership agreement we have secured a continued close       collaboration between Sergel and Telia Company. I am confident that       Marginalen will be a dedicated owner and provide Sergel and its       employees with an excellent platform for future growth in a responsible       and caring way, says Christian Luiga, CFO of Telia Company.    
      About Marginalen    
      Marginalen is a privately-owned bank and financial services company with       a total of approximately 700 employees in Sweden, Latvia and Lithuania.       In 2015, Marginalens total revenues amounted to SEK 735 million.       Marginalen Bank, a subsidiary of Marginalen AB, offers lending, saving       and insurance services to the public in Sweden, Latvia and Lithuania. As       per 31 December 2015, Marginalen Bank had total assets with a book value       of SEK 17,430 million and a total deposit volume of SEK 15,191 million.       Marginalen Bank is licensed and regulated by the Swedish Financial       Supervisory Authority.    
      Telia Company 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       08.00 on 21 June, 2016.    
      Forward-Looking Statements    
      Statements made in the press release relating to future status or       circumstances, 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 Telia Company.    
      Were Telia Company, the New Generation Telco. Our 21,000 talented       colleagues serve millions of customers every day in one of the worlds       most connected regions. With a strong connectivity base, were the hub       in the digital ecosystem, empowering people, companies and societies to       stay in touch with everything that matters 24/7/365 - on their terms.       Headquartered in Stockholm, the heart of innovation and technology,       were set to change the industry and bring the world even closer for our       customers. Read more at http://www.teliacompany.com/       .    
      Telia Company AB
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      TeliaSonera AB