Tele2 Sells German Unit to Local Management for €22.8 Million
Tele2 will sell its German division to the unit’s management for an enterprise value of up to €22.8 million. Swedish-headquartered operator claims that it would help it focus on core operations.
The operator said the amount of the divestment deal could be amended, depending on the financial performance of the German business until the end of 2024. The move followed a thorough M&A process with a large number of potential buyers, after which the company concluded a sale of Tele2 Germany to its management team was the most value accretive alternative, the company said in a statement. The group also claimed the divestment was a step in its long-term strategy to consolidate its geographical footprint.
Tele2 Group CEO Kjell Johnsen noted the German management team had done an impressive job throughout the years, by creating significant value despite having a portfolio of products in structural decline. He added the team was best suited to manage the operation going forward, while Tele2 continues its focus on core markets and products. The deal is expected to be finalised by the end of this month.