The Tele2 Group has agreed with Kazakhstan national operator Kazakhtelecom on the price for its share in their joint venture. The net proceeds to Tele2, after deducting the existing earn-out liability, will be USD 169 million. In addition Tele2 will receive full repayment of its shareholder loan amounting to KZT 80 billion. The transaction is expected to close at the end of June.
Tele2 gave notice in December to exercise its put option in the JV. Tele2 owns 49 percent of the economic interest and 51 percent of the votes. The new agreement gives the JV an enterprise value of USD 800 million, corresponding to a multiple of 7.3 times its underlying EBITDA in 2018.
The expected financial consideration to Tele2 will reflect a fully diluted economic equity interest of 31 percent, taking into account Kauz’s 18 percent earn-out.As previously announced, Tele2’s management board intends to remunerate shareholders with the net proceeds received from the sales of assets in Kazakhstan and the Netherlands while maintaining the financial leverage target range of 2.5-3.0x. The form and timing of distribution of the proceeds will be announced at a later date.
Revenues at mobile operator Tele2 Kazakhstan totaled SEK 787 million in the first quarter of this year, up from SEK 687 million a year earlier. Underlying EBITDA amounted to SEK 352 million, up from SEK 202 million. Capital expenditure grew from SEK 39 million to SEK 136 million.
