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TELIA - Telia AB News Story

SEK37.25 0.4  1.1%

Last Trade - 5:00pm

Sector
Telecoms
Size
Large Cap
Market Cap £12.80bn
Enterprise Value £21.17bn
Revenue £7.52bn
Position in Universe 55th / 1828

UPDATE 1-Sweden's Tele2 agrees deal to exit Kazakhstan

Thu 23rd May, 2019 9:19am
(Adds detail, background)
    STOCKHOLM, May 23 (Reuters) - Telecom operator Tele2
 TEL2b.ST  said on Thursday it has agreed with Kazakhtelecom
 KZTK.KZ  to sell its share in their joint venture to its
partner so it can focus on Nordic and Baltic markets.
    Tele2 and the Kazakh state-controlled telecommunications
firm formed the joint venture in 2015 to combine their mobile
businesses in the country.
    The Swedish company said in December that it had initiated a
sale process of its 49 percent stake in the venture after
Kazakhtelecom struck a deal to buy a 75 percent stake in mobile
operator Kcell  KCEL.KZ  from Telia  TELIA.ST  and Turkcell
 TCELL.IS .  urn:newsml:reuters.com:*:nL8N1YH16S
    "When Kazakhtelecom signed its deal with Telia and Kcell, it
triggered the option and we chose to use it," a Tele2 spokesman
said, adding the deal was in line with the firm's strategy to
focus on the Nordic and Baltic markets.
    Tele2 said in Thursday's statement it will get net proceeds,
after deducting the existing earn-out liability, of $169
million, and full repayment of its shareholder loan of around
2.1 billion crowns ($218 million).
    It added that the deal valued the joint venture at an
enterprise value of $800 million, while the transaction was
expected to close at the end of June.
    Sweden's Telia, a competitor to Tele2, is also focusing on
its Nordic and Baltic home markets after retreating from central
Asia, a previous source of growth.
    ($1 = 9.6415 Swedish crowns)

 (Reporting by Helena Soderpalm; Editing by Simon Johnson;
Editing by Elaine Hardcastle)
 ((helena.soderpalm@thomsonreuters.com; +46 8 700 10 15; Reuters
Messaging: helena.soderpalm.reuters.com@reuters.net))
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