Tele2 Group has agreed to sell its Austrian business to Hutchison's Three Austria for EUR 95 million.
Three Austria will merge Tele2 network with its existing mobile business, creating a telecoms group to rival Telekom Austria.
At the same time, the transaction enables Tele2’s continued focus on growth opportunities in markets where the company can be the customer champion of connectivity on its own infrastructure.
Tele2 Austria had net sales of SEK 1.1 billion and an EBITDA of SEK 185 million in 2016. The customer base amounted to 217 000 and the operations had 241 employees at the end of 2016.
Tele2 will receive EUR 85 million at closing and up to EUR 10 million in the form of an earn-out to be paid over 12-24 months depending on the success of the integration process.