0
Mobile & Wireless

Tele2 to sell Russian operations for USD 2.4 bln

Thursday 28 March 2013 | 08:43 CET | News
Tele2 has agreed to sell its mobile operations in Russia to the bank VTB for USD 2.4 billion plus USD 1.15 billion in net debt. The deal values Tele2 Russia, the fourth-largest mobile operator in Russia with almost 23 million customers, at 4.9 times EBITDA for 2012. 

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.



Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Categories: Mobile & Wireless
Companies: Alfa / Tele2 / Tele2 Russia / Vimpelcom
Countries: Russian Federation
::: add a comment

Add comment

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.






+2%
Triple play market grows almost 2% in Q3
Netherlands  |  2015 Q3

Calendar   /   Industry Events

09 Feb Com Hem Q4 2015
09 Feb Opera Software Q4 2015
09 Feb Allot Communications Q4 2015
09 Feb Limelight Networks Q4 2015
09 Feb Akamai Technologies Q4 2015
09 Feb Calix Q4 2015
09 Feb Telekom Austria Q4 2015
09 Feb KDDI fiscal Q3
09 Feb Nuance Communications fiscal Q1
09 Feb Iot Data
09 Feb ТB Forum powered by Intersec 2016
10 Feb CenturyLink Q4 2015
10 Feb Telenor Q4 2015
10 Feb Telenet Q4 2015
10 Feb Twitter Q4 2015
10 Feb America Movil Q4 2015
10 Feb ARM Q4 2015
10 Feb Softbank fiscal Q3
10 Feb Cisco fiscal Q2
10 Feb Aviat Networks fiscal Q2
10 Feb Zynga Q4 2015
10 Feb Millicom Q4 2015
10 Feb IoT Tech Expo
11 Feb Nokia Q4 2015
11 Feb Nextgentel Q4 2015
11 Feb Verisign Q4 2015
11 Feb FireEye Q4 2015
11 Feb Pandora Q4 2015
11 Feb Infinera Q4 2015
11 Feb Redknee Solutions fiscal Q1
::: More Calendar Items