Tele2 AB sells its Danish business to Telenor ASA

Swedish telecomms operator Tele2 AB said on Wednesday (9 May) that it has sold its Danish operation, Tele2 Denmark, including fixed, broadband and mobile businesses, to the Norwegian telecomms operator Telenor ASA.

Tele2 said that it has decided to exit Denmark and continue with the strategy to concentrate its operations to markets with expectations of higher returns.

At the end of 2006 Tele2 Denmark had 75,000 broadband customers, 206,000 fixed telephony customers and 227,000 mobile telephony customers of which 100,000 were post-paid.

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The Danish business recorded revenues of SEK1,695m and operating profit (EBITDA) of SEK68m in 2006.

Tele2 said that Telenor will pay some SEK1,025m in cash for Tele2 Denmark. The transaction will have a positive one-time effect for Tele2 of approximately SEK400-500m.

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