June 26, 2008

Tele2 Unloads Luxembourg and Liechtenstein to Belgacom

Tele2 AB announced that it has sold its Luxembourg and Liechtenstein operations to Belgacom. Belgacom will pay in cash approximately SEK 2 billion on a debt and cash free basis. Completion is expected following approval from the relevant regulatory authorities.

Lars-Johan Jarnheimer, President and CEO of Tele2, comments: "Tele2 has for several years operated very successful infrastructure based businesses in both Luxembourg and Liechtenstein. However, as an important step in our realignment process, Tele2 has decided to take advantage of attractive pricing on the two assets in order to realize value."

At the end of March 2008, Tele2 Luxembourg and Tele2 Liechtenstein had approximately 238,000 mobile customers, 10,000 fixed broadband customers and 26,000 fixed telephony customers. Tele2 Luxembourg and Tele2 Liechtenstein affected Tele2's operating revenue in 2007 and the Q1 2008 by SEK 935 million and SEK 223 million, respectively, and EBITDA by SEK 271 million and SEK 57 million, respectively. The transaction will result in a positive one-off item of approximately SEK 1 billion.



back