Tele2 offloads its French fixed, broadband operations to SFR

3 Oct 2006

Swedish pan-European alternative telecoms operator Tele2 says it has sold its French fixed and broadband business to one of the country’s mobile operators, Société Française de Radiotéléphone (SFR), for SEK3.3 billion (USD450.4 million). It is understood that the final purchase price will be based on the number of customers the French business has at the end of this month – the anticipated closing date for the transaction. Tele2 France had more than 3.3 million fixed and high speed internet customers at the end of June. Under the deal, the majority of Tele2’s French workforce will move across to SFR. The Tele2 name will continue for the time being, although it is set to be dropped after three years. The Swedish firm will, however, retain full control of the group’s mobile business in France, which had a customer base of more than 300,000 users at end-June 2006. The company will book a one-time loss of SEK1 billion from the sale, Tele2 said in a statement today. The Stockholm-based alternative telco said it made a valuation of its remaining goodwill after the sale and will write down between SEK3 billion and SEK.5 billion in the third quarter.

France, (Omea Telecom) Tele2 Mobile, SFR, Tele2