TDC exits Sweden in sale to Tele2

Nieuws Breedband Zweden 21 JUN 2016
TDC exits Sweden in sale to Tele2

Danish operator TDC is exiting the Swedish market and selling its activities there to Tele2. Tele2 will acquire TDC Sweden at an enterprise Value of SEK 2.9 billion (EUR 310 million), helping strengthen its position in the B2B segment on its home market. TDC Sweden serves the public sector and many blue-chip customers in Sweden with a range of connectivity services. It generated net sales in 2015 of SEK 3.4 billion and EBITDA of SEK 0.4 billion. The operations had 809 full-time employees at the end of 2015. 

For TDC, thing brings to an end its strategic review and leaves the company focused on Denmark and Norway. It will continue to cooperate with Tele2 in Sweden to serve business customers there, and operate a core network in Sweden as part of its fibre ring connecting Norway to Finland. The sale remains subject to approval by the European Commission. 

Tele2 expects synergies of SEK 300 million in annual opex and capex and SEK 200 million in one-off capital expenditure thanks to the deal, as well as a boost to sales. The one-time integration costs are estimated at SEK 750 million. It plans a rights issue to raise SEK 3 billion to strengthen its balance sheet after the acquisition. The share issue must still be approved by shareholders and already counts the support of its largest shareholder Kinnevik. The rights Issue is expected to be completed by the fourth quarter, and the takeover will also close by year-end. 

Categories:

Vast

Companies:

TDC,  Tele2

Countries:

Zweden

Tags:

Voice services, Data services, Wholesale, Enterprise, M&A buyouts & divestments

Related Articles

ZWEDEN 10 JAN 2018

Tele2 to acquire Com Hem to form Sweden's second-largest operator

Tele2 Group and Com Hem Holding said they are merging to create Sweden's second largest mobile telephony and fixed broadband provider, as Tele2 seeks to focus on the Baltic Sea region after strategic moves elsewhere. Tele2 is absorbing the Swedish cable operator but Com Hem's CEO Anders Nilsson will take over as CEO of the enlarged Tele2 from Allison Kirkby.

ZWEDEN 17 OCT 2017

Tele2 Sweden wins telephony and data contracts from Vastra Gotaland county council

Tele2 Sweden said it has won an order to supply Vastra Gotaland county council, the second largest in the country, with telephony and data communication services. The two orders are worth approximately SEK 50 million per year and run until 2019, with optional renewal. There are 49 local councils in Vastra Gotaland and more than 1.6 million inhabitants.

ZWEDEN 26 JAN 2017

Tele2 Sweden Q4 results flat excluding TDC, mobile users dip

Tele2 Sweden said total net sales in the fourth quarter of 2016 rose to SEK 4.029 billion from SEK 3.299 billion a year earlier following the takeover of TDC Sweden. The integration of TDC is already under way and progressing well, with a number of key contracts retained, it said. EBITDA increased to SEK 1.028 billion from SEK 946 million in the same quarter last year.

EUROPA 26 JAN 2017

Tele2 sales up 18% in Q4 after Swedish takeover

Tele2 reported higher sales and operating profit for the fourth quarter, driven by its takeover of TDC Sweden at the end of October. Revenues rose 18 percent to SEK 8.22 billion. On a like-for-like basis, sales were up 2 percent, led by a 6 percent increase in mobile service revenue to SEK 3.74 billion. EBITDA improved 9 percent to SEK 1.46 billion and was up 6 percent on a like-for-like basis. Neverthless, the bottom line was still in the red, at a loss of SEK 177 million versus a profit of SEK 45 million

ZWEDEN 23 NOV 2016

Tele2 Sweden raises SEK 2.96 bln in rights issue

Tele2 said that the final result of its rights issue shows that 2.52 million A shares and 52.68 million B shares were subscribed for. Tele2 will receive approximately SEK 2.96 billion through the rights issue before transaction costs. The company said earlier this year it aimed to raise SEK 3 billion to strengthen its balance sheet after the acquisition of TDC's Swedish arm.

EUROPA 24 OCT 2016

Tele2 proposes rights issue at 30% discount

Tele2 has announced the terms of its planned SEK 3 billion rights issue, announced earlier to help finance the acquisition of TDC's Swedish activities. Each existing A and B share will come with the right to subscribe to one new share of the same class, with a bonus share for every eight shares held. The new shares are priced at SEK 53 each, a discount of 30.2 percent on the current price of the B shares and 37.1 percent on the A shares. The record date for participating in the rights issue is 31 October, a

ZWEDEN 4 OCT 2016

Tele2 to raise SEK 3 bln in rights issue for TDC Sweden buy

Tele2 said its board of directors has decided on a rights issue of approximately SEK 3 billion rights issue in connection with its acquisition of TDC Sweden. The issue is subject to approval by an Extraordinary General Meeting on 27 October. Tele2's largest shareholder is Kinnevik, with 30.34 percent of shares and 47.92 percent of votes, and has committed to subscribe for its pro rata share of the rights issue.

ZWEDEN 9 SEP 2016

Tele2 Sweden sells iPhone 7 from SEK 312 per month

Tele2 Sweden said it will be selling the Apple iPhone 7 from SEK 312 per month to individual customers and the iPhone 7 Plus from SEK 366. People with student identification can get the standard version from SEK 295 and the Plus version from SEK 349. For business customers, the standard iPhone 7 will start at SEK 568 and the Plus version will begin at SEK 613.

DENEMARKEN 10 AUG 2016

TDC says Danish B2B still challenging in Q2, Get lifts sales

TDC Group's second quarter results are in line with its expectations following the brand merger of its domestic operations as YouSee and the divestment of its Swedish arm. Group revenue fell to DKK 5.204 billion from DKK 5.422 billion in the same period last year and EBITDA was 2.117 billion, down 9.7 percent from DKK 2.344 billion, or down 7.2 percent year on year on an organic basis. The Danish market remains under pressure, especially in the corporate segment, but sales of broadband to its Norwegian tele

NOORWEGEN 9 AUG 2016

TDC tweaks Norwegian managers' share incentive plan

Danish operator TDC said it is amending its share incentive programme for the management of TDC Norway and Get. The aim is to guarantee them a minimum return on their TDC share investment of 0.8 percent per year, in the form of TDC shares or cash. The change is intended to better align the returns of the Norwegian management incentive programme with the financial results of TDC's Norwegian business

ZWEDEN 21 JUL 2016

Tele2 Sweden Q2 EBITDA hit by non-recurring item

Tele2 Sweden said total net sales in the second quarter of 2016 fell to SEK 3.018 billion from SEK 3.101 billion and EBITDA dropped to SEK 846 million from SEK 908 million, hit by increased sales and marketing initiatives and non-recurring items. It had 3.957 million customers on 30 June, up by 3,000 over the quarter.

EUROPA 21 JUL 2016

Tele2 quarterly EBITDA falls 22%, sales up 1%

Tele2 reported a drop in second-quarter profits as the company increased commercial spending in an effort to accelerate sales in its largest markets, Sweden and the Netherlands. While revenues rose slightly to SEK 6.668 billion from SEK 6.611 billion a year ago, EBITDA dropped to SEK 1.087 billion from SEK 1.393 billion. The margin dropped to 16 percent from 21 percent a year ago. After SEK 95 million in restructuring charges and a higher tax bill, Tele2 posted a net loss of SEK 60 million from the quarter,

DENEMARKEN 8 JUL 2016

TDC rejects takeover approach

Danish operator TDC said in response to an article published in newspaper Borsen that it confirms that it had received a highly preliminary approach for a potential acquisition of control of the company. TDC reviewed the approach and concluded that it was financially inadequate, incomplete and not in the best interest of shareholders.

DENEMARKEN 8 JUL 2016

TDC says 4 out of 10 Danes work during summer holidays

TDC said many Danes like to check on their work communications even when they are meant to be on their summer holidays. The operator was citing a survey of 1,008 people by YouGov, commissioned by its corporate services arm, TDC Erhverv. It found that four out of ten people work during their summer leave.

DENEMARKEN 7 JUL 2016

TDC restates old results to reflect Swedish sale

Danish operator TDC has restated its figures for period from the first quarter of 2014 to the first quarter of 2016. This follows its decision to sell TDC Sweden, which will be listed as a discontinued activity in its accounts from the second quarter of 2016. This will not affect the company's full-year forecasts.

Just In

19 DEC 16:42

SLT-Mobitel launches 5G network in Sri Lanka

19 DEC 16:19

Dialog Axiata launches 5G network, connects 1.5 million subscribers

19 DEC 15:56

UK govt to ban AI-enabled nudification apps to protect women, girls

19 DEC 15:42

3 UK launches last-minute Christmas sale

Commentary

13:56

Video market set for slower growth ahead

11:38

Netflix buys Warner Bros to deepen content catalogue

11:11

KPN's mixed performance in Q3 raises questions for strategy day

15:26

Stock markets breaking records but what happened to Odido's IPO plans?

Background

01:04

The week in telecom: Wi-Fi bolt-ons take off to boost broadband growth, video market works on consolidation

01:39

The week in telecom: Netflix wins bidding for Warner Bros, Apple poaches new execs, Samsung debuts trifold

13:51

Proximus vs. Telenet: Proximus performs better in Q3 while Telenet uses up cash

14:16

Proximus Domestic still struggling with low margins

Complete profile

Before downloading the whitepaper, we would like to ask you to complete your profile with company and position. After confirming you will receive the white paper.