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Tele2 Sells French Business

Tele2 divests Tele2 France to Virgin Mobile for approximately SEK 575 million

October 16, 2009

1 Min Read

STOCKHOLM -- Tele2 AB, (Tele2), (NASDAQ OMX Stockholm: TEL2 A and TEL2 B) today announced that is has sold its French operations to Virgin Mobile. Virgin Mobile will pay in cash approximately SEK 575 million on a debt and cash free basis. Completion is expected following approval from relevant regulatory authorities.

At the end of June 2009, Tele2 France had approximately 429,000 mobile customers. Tele2 France affected Tele2's operating revenue in 2008 and the H1 2009 by SEK 1,233 million and SEK 637 million, respectively, and EBITDA by SEK 6 million and SEK 55 million, respectively. The transaction will result in a goodwill impairment loss of approximately SEK 526 million in Q3 2009. As an effect of the divestment, Tele2's French operation will be treated as discontinued operations.

Tele2 AB (Nasdaq: TLTO)

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