HTCC acquires Tele2 Hungary

Pan-European alternative telecoms operator Tele2 has divested its Tele2 Hungary unit to Hungarian Telephone and Cable Corp (HTCC), for SEK40 million (USD2.97 million) on a debt and cash free basis, with the sale having a positive one time effect on Tele2’s results of approximately SEK20 million. The Swedish company said the decision to sell was part of a wider plan to concentrate on core markets where it has a stronger market position and higher expectations in terms of profitability. Tele2 Hungary is estimated to have had around 490,000 fixed telephony customers at the end of May 2007, and posted EBITDA of SEK31 million on sales of SEK374 million in fiscal 2006.