TeliaSonera AB associated company sells stake in Eltel Networks

Nordic Business Report, June 12, 2007

NORDIC BUSINESS REPORT-12 June 2007-TeliaSonera AB associated company sells stake in Eltel Networks(C)1994-2007 M2 COMMUNICATIONS LTD http://www.m2.com

Swedish-Finnish telecomms operator TeliaSonera AB said on Tuesday (12 June) that its associated company Telefos AB is to sell its holding in Eltel Networks to private equity group 3i.

TeliaSonera said that the purchase price is confidential and the transaction is subject to regulatory clearance.

TeliaSonera expects the transaction to have a positive effect on its second or third quarter earnings.

TeliaSonera owns 25.6% of Telefos AB, with the majority of the company owned by the Nordic private equity firm Industri Kapital.

Eltel Networks is the Northern European market leader for the installation and maintenance of infrastructure for electricity and telecommunications. The company is headquartered in Espoo, Finland and has 8,200 employees across Europe, primarily in the Nordics, the Baltics and Poland.

Industri Kapital is a Nordic private equity group managing some EUR4bn in three active funds. Its current portfolio comprises 24 mainly mid-sized companies with a combined turnover of EUR8.6bn.

TeliaSonera has 28,175 employees and reported net sales of SEK91.1bn in 2006. The company is listed on the Nordic Exchange in Stockholm and Helsinki.

One British pound (GBP) is worth approximately 1.47 euros (EUR).One British pound (GBP) is worth approximately 13.75 Swedish kronor (SEK).

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