Tele2 Group agreed a deal to sell its German division to the unit’s management for an enterprise value of up to €22.8 million, a move the Sweden-headquartered operator claimed would help it focus on core operations.
In a statement, 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.
Tele2’s 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 group also claimed the divestment was a step in its long-term strategy to consolidate its geographical footprint.
Tele2 Group CEO Kjell Johnsen (pictured) 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.
Revenue at the German unit fell 11 per cent year-on-year in Q3, though its Swedish and Baltic operations contributed to a 17 per cent hike in net profit.