Divestment of Mila to Ardian facing a regulatory hurdle

6 Jul 2022

Icelandic telecoms operator Siminn has revealed that the Icelandic Competition Authority (ICA) has completed the initial assessment of the proposed divestment of wholesaler Mila to French investment fund Ardian Infrastructure, with the authority concluding that the merger distorts competition and will not be approved by the ICA without conditions and/or with further explanations by the merging parties. The parties have now been given until 15 July to provide more information on the proposed transaction (extendable to 18 August if ‘conciliation negotiations’ are requested).

TeleGeography notes that the deal for the divestment of Mila was agreed in October 2021; Siminn will sell the unit to Ardian for an enterprise value of ISK78 billion (USD578 million), which includes the assumption of Mila’s debt and implies a valuation of 17.1x EBITDAaL. The deal is subject to approval by the ICA and is expected to be finalised in H1 2022.

Iceland, Mila, Siminn (Iceland Telecom)