Hutchison's Three Austria Pays €95m to Buy Tele2 Austria

Hutchison's Three Austria Pays €95m to Buy Tele2 Austria Image Credit: Tele2

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. 

Allison Kirkby, President and CEO, Tele2
Since we entered Austria in 1999 we have built a successful business and are extremely proud of the brand we have built, and the talented employees who have supported our valued customer base. However, to create greater value for our customers and our shareholders over the longer term, we believe Tele2 Austria will benefit from consolidation with Three Austria. 

Alfred Pufitsch, CEO of Tele2 Austria 
The transaction will bring together two great players in the Austrian market. The combined strength will create a company that is even better at serving the Austrian customers.

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn @raysharma10, Facebook @1RaySharma

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