Tele2 agrees EUR74 million loan for Norwegian network expansion

2 Oct 2012

Sweden’s Tele2 has announced that it has inked a EUR74 million (USD95 million) loan agreement with Nordic Investment Bank (NIB) ‘for the complementary financing of the Tele2 mobile network expansion in Norway’. Funds from the eight-year maturity loan will be utilised to help Tele2 boost the capacity of its mobile infrastructure in Norway, and the company has claimed the financing represents ‘a further step towards diversification of the funding sources for Tele2’.

As noted in TeleGeography’s GlobalComms Database, with Tele2 Norge having long operated as a mobile virtual network operator (MVNO), its Swedish parent revealed plans that would see the cellco become a de facto mobile 2G/3G network operator, some nine years after handing back its original 3G licence. In July 2011 Tele2 announced that it was purchasing 66.65% of Network Norway’s outstanding shares after reaching an agreement with Orkla ASA, Hafslund Venture II and Katalysator Telekom AS. Tele2 said it would pay approximately SEK890 million (USD140 million) in cash for the shares in a deal that valued Norway’s third GSM operator at SEK1.7 billion. At the time of the announcement it was suggested that Tele2 would look to make an offer to all of Network Norway’s remaining shareholders, and such predictions proved well founded, with Tele2 confirming in September 2011 that it had acquired 99% of the shares in Network Norway.