French telecommunications player Iliad Group, through its investment vehicle Freya Investissement (jointly owned by Iliad and NJJ Holding), has entered into a binding agreement to acquire around a 19.8 percent stake in Tele2, a telecom company operating in Sweden and the Baltics. The transaction, valued at approximately EUR 1.16 billion (SEK 13.0 billion), solidifies Freya's position as Tele2's reference shareholder, paving the way for collaborative efforts in innovation and network investments.
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Strategic Stake Acquisition
"After the approval by the relevant authorities, Freya will become the reference shareholder of Tele2 upon closing of the transaction," the Iliad statement said. "With its expertise and know-how in managing telecom assets, the acquisition of this strategic stake will offer the Iliad Group, through Freya, an opportunity to further Tele2's growth and to collaborate with Tele2's management team on innovation, convergence, and investments in next-generation networks."
A statement released on Monday said that under the agreement, Freya will purchase both Class A and Class B shares from Kinnevik, a major shareholder in Tele2. The acquisition has been structured into three tranches to facilitate a phased approach. The first tranche (31,329,972 B Shares), representing 4.5 percent of the share capital of Tele2, will take place shortly, with subsequent tranches pending regulatory approvals.
The closing of Tranche 2 is expected to occur during the second quarter of 2024, and the closing of Tranche 3 is expected to occur, at the latest, during the third quarter of 2024.
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Commenting on the development, Iliad Group said, "The Iliad Group and the Tele2 Group have a lot in common. We both believe in the power of innovation and the importance of an entrepreneurial mindset. Our business sector in Europe is highly demanding. So, we have a great deal of respect for what Tele2's shareholders, management and teams have achieved, and we're delighted that Kinnevik has chosen Freya as Tele2's new reference shareholder. We look forward to contributing to the next chapter of Tele2's growth story!"
Iliad Group is the parent company of Free in France, Iliad in Italy, and Play in Poland, serving 47.8 million subscribers. The Iliad Group is Europe's sixth-largest operator by the number of retail mobile subscribers (excluding M2M) and fixed internet.
