The deal gives Tcell an enterprise value of USD 66 million, of which Telia Company's 60 percent share corresponds to USD 39 million. Based on current forex rates, the agreed price implies an EV/EBITDA multiple of approximately 4.0x based on Tcell's 2015 results.
The transaction will have limited impact on Telia's results and net debt, the company said. Telia added that it has together with external risk consultants conducted due diligence and background checks of the parties in this transaction.
The divestment is part of Telia's plan announced last year to exit its operations in Eurasia and increase its focus on Europe and Sweden. The decision follows long-running allegations of corruption in how it was awarded licences in some countries in Eurasia. The company's own investigation in 2012-2013 found several shortcomings in corporate governance and led to a complete overhaul of its management. It already completed the sale of its stake in Ncell in Nepal.
