Tele2 Estonia completes Televorgu acquisition

Less than a month after the deal was first announced, Swedish telecoms group Tele2 has completed the acquisition of Estonian fibre-optic trunkline telecommunication network and wireless internet service provider (WISP) Televorgu. According to Eesti Rahvusringhaaling, local power company Eesti Energia, Televorgu’s owner, has finalised the sale of the unit after the local competition authority approved the deal. Under the terms of the deal Tele2’s Estonian subsidiary is understood to have paid EUR25 million (USD32.8 million) for Televorgu, which operates a 1,600km fibre-optic network and offers broadband services under the ‘Kou’ banner. In the wake of the deal’s completion, Mindaugas Ubartas, Tele2 Eesti’s chairman, claimed that the Televorgu network, coupled with the group’s Latvian and Lithuanian partners, added up to a unique asset that would allow the company to expand the selection and volume of services aimed at corporate customers. Looking ahead, Tele2 Eesti is now expected to take over the operation of Kou services from 1 July 2012, with existing customers to remain unaffected by the corporate changes.