The sale, which puts the enterprise value of Tele2 Norway at SEK 5.1 billion, will result in a capital gain of SEK 2 billion for Tele2. The company said it would announce at a later date what it will do with the proceeds.
TeliaSonera's Netcom will benefit from an additional 1.2 million customers, enhanced network scale and a quicker roll-out of 4G. The company committed itself to 98 percent population coverage for 4G by 2016 as part of the deal, two years ahead of its obligations.The transaction is subject to regulatory approval from the Norwegian Competition Authority, which is expected by the first quarter of 2015.
Tele2 Norway had net sales in 2013 of SEK 4.1 billion and EBITDA of SEK 121 million. With the takeover, TeliaSonera's mobile market share in Norway will increase to approximately 40 percent from 23 percent, and its mobile subscriber base will grow to 2.7 million from 1.6 million. The acquisition is estimated to require integration costs of SEK 250-450 million and investments of SEK 350 million in order to handle the increased traffic. The operator also expects substantial cost synergies, estimated at at least SEK 800 million annually from 2016.
