Belgacom has acquired Tele2 Luxembourg operating under the brand name Tango. Tele2 Luxembourg currently provides mobile, fixed voice and DSL services in Luxembourg. Belgacom intends to maintain its residential mobile offering under the Tango brand and further penetrate the corporate market by leveraging its existing ICT business through Telindus Luxembourg. Tele2 Luxembourg has 238,000 mobile customers, 26,000 fixed line customers and 10,000 broadband customers. As part of the transaction, Belgacom also acquires Tele2's Liechtenstein fixed and mobile operations. Belgacom is acquiring all shares of Tele2 Luxembourg for EUR 207 million on a debt and cash free basis. Given Belgacom's operations in Belgium and its existing presence in Luxembourg, it is confident to achieve synergies of at least EUR 25 million. Tele2 Luxembourg reported EUR 31 million EBITDA in 2007 and EUR 6.15 million for the first quarter of 2008. This transaction is subject to relevant approvals of the appropriate antitrust authorities. For Tele2, the transaction will result in a positive one-off item of approximately SEK 1 billion.
