Sweden’s Tele2 Group has announced the successful completion of its recently announced sale of Tele2 Russia to the VTB Group. Mike Parton, chairman of Tele2, commented: ‘This is an excellent result for Tele2 shareholders. Our cash investment in this business was SEK6 billion (USD918 million) and this has generated a cash return of over SEK27 billion including the transaction, much of which has been returned to our shareholders’.
As previously reported by TeleGeography’s CommsUpdate, last week Tele2 Group agreed to sell its Russian operations to the VTB Group in a cash deal comprising USD2.4 billion in equity value and USD1.15 billion in net debt, going on to reject a counter offer by Mobile TeleSystems (MTS) and Vimpelcom, who offered a roughly 30% premium on the price offered by VTB. Under the terms of the deal, if VTB opts to sell the mobile network on to another buyer within a year of completing the transaction, Tele2 will receive half of any cash profit made by VTB.