Telia AB logo

TELIA - Telia AB News Story

SEK36.64 0.1  0.3%

Last Trade - 14/05/21

Sector
Telecoms
Size
Large Cap
Market Cap £12.76bn
Enterprise Value £21.14bn
Revenue £7.54bn
Position in Universe 55th / 1832

UPDATE 1-Sweden's Telia buys Bonnier's TV unit in $1 bln deal

Fri 20th July, 2018 6:55am
(Adds detail, background)
    STOCKHOLM, July 20 (Reuters) - Telia Company  TELIA.ST  said
on Friday it had signed a deal to buy Bonnier's Broadcasting
business, in line with its strategy to focus on Nordic core
markets while exiting its Eurasian businesses. 
    The Nordic and Baltic telecoms operator - which earlier this
week announced the acquisition of TDC's Norwegian business in a
$2.6 billion deal - had previously confirmed it was in talks
with Bonnier to buy the unit, seeking to boost its TV content.
 urn:newsml:reuters.com:*:nL5N1SW2N1.
    Telia said it would pay 9.2 billion crowns ($1.03 billion)
on a cash and debt free basis, with a potential additional
amount of maximum 1 billion based on future operational revenue
and EBITA performance.
    A source told Reuters late on Thursday that Telia had pushed
for a deal valued below the 10-12 billion Swedish crown range
that local media reported in May.  urn:newsml:reuters.com:*:nL8N1UF3LK
    Telia said the acquisition was expected to generate
synergies from 2020 with a full run-rate of 600 million crowns
in 2022. It will establish a new business area, where the firm's
existing TV business and Bonnier Broadcasting will be included.
    Bonnier Broadcasting, which includes brands such as Swedish
TV4 and streaming service C More and Finnish MTV, had sales of
7.5 billion Swedish crowns last year and an operating profit
(EBITA) of 423 million crowns.
    "The acquisition of Bonnier Broadcasting will not affect
Telia Company's share buy-back program or dividend policy,"
Telia said in a statement.
    Analysts have raised doubts the move into media could dilute
the focus on Telia's core telecoms business, threatening
dividend payouts in the longer term.
    Telia's exit from its previous growth engine in central
Asia, which it began in 2015, has contributed to a strong
balance sheet, raising expectations for generous shareholder
payouts.
    Chief Executive Johan Dennelind said earlier this week that
the company had room for more acquisitions without impacting on
its plans for share repurchases and dividend policy.
 urn:newsml:reuters.com:*:nL8N1UD0LD
      

($1 = 8.9006 Swedish crowns)

 (Reporting by Olof Swahnberg and Helena Soderpalm; Editing by
Stephen Coates)
 ((helena.soderpalm@thomsonreuters.com; +46 8 700 10 15; Reuters
Messaging: helena.soderpalm.reuters.com@reuters.net))
© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.