EC clears Tele2 acquisition of TDC Sweden

Tele2 AB (STO:TEL2B) (STO:TEL2A) (OSE:TLE2) says it has received European Commission clearance to complete its planned acquisition of TDC Sweden. Tele2 expects to close the transaction, which places an enterprise value of SEK 2.9 billion on TDC Sweden, by the end of this month.

TDC Sweden provides business-to-business (B2B) services in Sweden, and thus is expected to strengthen Tele2's hand in that market. The acquisition target had net sales in 2015 of SEK 3.4 billion and an EBITDA of SEK 0.4 billion. Tele2 reported 2015 net sales of SEK 27 billion and EBITDA of SEK 5.8 billion.

Tele2 says it has the necessary funds and credit facilities available to make the acquisition without the need for additional equity financing. However, it says it will issue equity in conjunction with the transaction, with preferential rights for existing shareholders. The service provider asserts the rights Issue is fully underwritten and has the support of the company's largest shareholder, Kinnevik.

"We are delighted to have received clearance to proceed with the acquisition of TDC Sweden," said Allison Kirkby, president and CEO of Tele2 AB. "This acquisition is consistent with our strategy to be champions of customer value for both consumers and businesses, allowing us to serve our large B2B customers with a stronger and wider range of communication and network services. The combination of Tele2 and TDC Sweden will therefore unlock significant value for both our customers and our shareholders."

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