Business Services Industry

Tele2 AB sells Tele2 Luxembourg and Tele2 Liechtenstein to Belgacom for SEK2bn

Nordic Business Report, June 26, 2008

Swedish telecomms operator Tele2 AB (OMX: TEL2 A) (OMX: TEL2 B) announced on Thursday (26 June) that it has sold its operations in Luxembourg and Liechtenstein to the Belgian operator Belgacom in a SEK2bn cash deal.

Tele2 Luxembourg and Tele2 Liechtenstein have a total of some 38,000 mobile customers, 10,000 fixed broadband customers and 26,000 fixed telephony customers, and achieved combined revenues of SEK1,158m in 2007.

The transaction will result in a gain of approximately SEK1bn.

"Tele2 has for several years operated very successful infrastructure based businesses in both Luxembourg and Liechtenstein. However, as an important step in our realignment process, Tele2 has decided to take advantage of attractive pricing on the two assets in order to realise value," commented Lars-Johan Jarnheimer, president and CEO of Tele2.

In a separate announcement Tele2 on Thursday also said that it has conducted an impairment of assets, resulting in a loss of approximately SEK1bn for the second quarter. The impairment is attributable to goodwill and other assets in Germany and Poland, Tele2 said.

Tele2, headquartered in Stockholm, Sweden, is a pan-European operator with more than 30m customers in 22 countries. The group reported operating revenue of SEK43.4bn in 2007.

One British pound (GBP) is worth approximately 11.90 Swedish kronor (SEK).

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