Swedish telecoms group Tele2 has announced the sale of Tele2 Austria to mobile operator Hutchison Drei Austria for an enterprise value of EUR95 million (USD111.6 million). With annual revenue of around EUR1 billion and approximately four million mobile, fixed line and broadband revenue generating units (RGUs), Hutchison Drei says the merger with Tele2 will create Austria’s largest alternative telecoms provider to incumbent A1 Telekom. The takeover will enable Hutchison Drei, which is owned by Hong Kong’s CK Hutchison, to offer a fully integrated quad-play offering of mobile, fixed telephony, television and internet services, via Tele2’s unbundled fixed line and fibre-optic networks, and its own 4G LTE infrastructure. For its part, Tele2 said the transaction enables its continued focus on growth opportunities in markets where the company can be the ‘customer champion of connectivity’ on its own infrastructure.
Tele2 will receive a consideration of EUR85 million at closing and up to EUR10 million in the form of an earn-out to be paid up to 24 months after completion, depending on the success of the integration process. The deal is expected to close after customary competition approval, which is anticipated by the end of this year.