Telia Company announced that it's agreed to sell its interest in Uzbekistan mobile operator Ucell to the State Committee of the Republic of Uzbekistan for Assistance to Privatised Enterprises and Development of Competition for USD 215 million on a debt-free basis. The US Department of Justice has been duly informed about the transaction, the company said.
This is the fifth divestment in line with the decision of the company to leave Eurasia and focus on the Nordic and Baltic regions. The transaction is not subject to any conditions, such as regulatory or competition approvals, and will be completed during the course of the day.
The transaction is expected to result in a gain of approximately SEK 0.4 billion before reclassification of accumulated foreign exchange losses of SEK 3.8 billion to net income from discontinued operations (which will have no material effect on group equity). The transaction is on a pro forma basis estimated to increase net debt to EBITDA by 0.1x. The final amounts are subject to changes in carrying values and foreign exchange rates.Ucell was established in 1996 under the brand Coscom. Telia Company became the majority owner in 2007 and the company changed its name to Ucell in 2008. It has roughly 1,250 employees and 7.1 million subscribers. Ucell’s 2G network covers approximately 97 percent of Uzbekistan and its 3G network covers roughly 60 percent of the country.
