Tele2 sells Lithuanian cable unit to local operator

16 Dec 2010

Swedish telecoms operator Tele2 has announced the sale of its Lithuanian cable business to local telecoms company VDNET for approximately SEK40 million (USD5.6 million) on a debt- and cash-free basis. Tele2 said in a press release via Thomson Reuters that completion of the deal is expected following approval from the competition authority. ‘Tele2 continuously evaluates its business plans in every region it operates in to make sure that maximum value is being created for its shareholders,’ commented Niklas Sonkin, Tele2’s market area director for Central Europe & Eurasia, adding: ‘Our Lithuanian cable operation has made good progression over the years. However, as competition increases and as there is a need for market consolidation, we have decided to sell to VDNET. This will enable Tele2 to focus even harder on its mobile operation with expectations of higher returns.’ According to Tele2, its Lithuanian cable operation had 10,700 fixed broadband customers and 33,000 TV customers at the end of September 2010. The transaction is expected to result in a negative one-off item of approximately SEK200,000.

Lithuania, Tele2 Lithuania