Sweden’s Tele2 AB has agreed to sell its Croatian business Tele2 Croatia to United Group for an enterprise value of EUR 220 million, the company said on Friday.
Closing the transaction
The transaction requires approval from relevant regulatory bodies including the Croatian Competition Agency. It does not require filing with the European Commission. Closing is expected before the end of 2019.
Following the agreement announced today Tele2 Croatia will be reported separately under discontinued operations in the income statement, with a retrospective effect on previous periods. Perella Weinberg Partners acted as financial advisor to Tele2.
After closing of the transaction Tele2’s Board of Directors will decide on the use of proceeds, taking into account the Group’s investment needs and its policies for shareholder remuneration and financial leverage. The previously announced extraordinary shareholder remuneration which is still subject to closing in Kazakhstan, is independent to the transaction in Croatia.
“We are proud of the business we have built in Croatia and especially its outstanding development in the last two years, driven by our talented employees and our valued customer base. We believe Tele2 Croatia will create even greater value for our customers going forward, as part of United Group’s family of telecom and media companies. For Tele2, this opportunity enables an increased focus on successfully executing our strategy in the remaining footprint. I would like to thank the Croatian team for their engagement and many contributions to Tele2 over the past 14 years,” Anders Nilsson, President and CEO of Tele2, said in a statement.
About United Group
United Group is headquartered in Amsterdam and is a leading connectivity and media provider in South East Europe with the largest broadest network coverage in the region with 3.82 million subscribers.
United Group has operations in six countries and employs around 4,400 employees.