Sweden's Tele2 Group announced that it has agreed with Kazakhtelecom on the price for its equity share in the joint venture between the two companies.
The net proceeds to Tele2, after deducting the existing earn-out liability, will be USD 169 million. On 28 December 2018, Tele2 gave its notice to exercise put option in the JV, in which Tele2 owns 49 percent of the economic interest and 51 percent of the votes. The new agreement values the JV at an enterprise value of USD 800 million, corresponding to a multiple of 7.3 times its underlying EBITDA 2018.
The net proceeds to Tele2, after deducting the earn-out liability to Kauz, the legal successor and parent company of AsiaNet, will be USD 169 million (approximately SEK 1.6 billion). Tele2 will also receive full repayment of its shareholder loan, amounting to KZT 80 billion (approximately SEK 2.1 billion). The transaction is expected to close at the end of June.
Anders Nilsson, President and CEO, Tele2
Tele2 has built a successful business in Kazakhstan and rolled out a national network for high-quality voice and data. The JV has dramatically increased its customer base, revenue, market share and profitability.
