Tele2 said it expects a capital gain of SEK 15.6 billion on the sale, of which SEK 12.5 billion or SEK 28 per share will be distributed to shareholders. The remainder will be re-invested in its business, with a renewed focus on the markets Sweden, the Netherlands, Norway and Kazakhstan.
VTB said it sees the takeover as a good financial investment, and it will seek financial and strategic partners to further develop the company. Bloomberg reports that Russian telecoms investor Alfa, which controls rival mobile operator Vimpelcom, has already expressed interest in taking over Tele2 Russia for USD 3.6-4.0 billion. It held talks with Tele2 and its shareholder Kinnevik last year, but a takeover bid at a "significantly higher price" was rejected by Tele2, Alfa's subsidiary A1 said.
The takeover is expected to close shortly and be included in Tele2's Q2 results. After selling its largest country operation, Tele2 revised its guidance for the medium term to exclude the Russian activities. It now expects a CAGR of 5-7 percent in revenues until 2015, reaching at least SEK 35.6 billion; EBITDA will grow at an estimated CAGR of 10-12 percent in the period to SEK 8.3 billion; and each operation in the group should return at least 20 (previously 24) percent on capital employed.
The company also maintained its dividend policy and a net debt target of 1.25-1.75 times EBITDA.
We welcome comments that add value to the discussion. We attempt to block comments that use offensive language or appear to be spam, and our editors frequently review the comments to ensure they are appropriate. If you see a comment that you believe is inappropriate to the discussion, you can bring it to our attention by using the report abuse links. As the comments are written and submitted by visitors of the Telecompaper website, they in no way represent the opinion of Telecompaper.
We have been keeping professionals in the telecoms industry up-to-date since 2000. Telecompaper is a well respected, independent research and publishing company focussed on the telecommunications industry.
3995 AA Houten
Phone: +31 30 6349600
Fax: +31 30 6349699
P.O. Box 356
3990 GD Houten
© 2000 - 2014 Telecom.paper BV. All rights reserved.
Telecompaper is a trademark of Telecom.paper BV. No part of this site can be reproduced without
the expressed permission of Telecom.paper BV. Our General Terms and Conditions can be found here.
Terms and Conditions