Jul 11, 2018 7:31 AM CET
A re-audit of Com Hem Holding’s financial statements, to be included in the submission of merger documentation with the Swedish Financial Supervisory Authority (“SFSA”) and U.S. Securities and Exchange Commission (“SEC”), has been completed. In connection with the re-audit Com Hem is making certain adjustments to its financial statements for the year ended 31 December 2017 and for the first quarter of 2018. The adjustments do not impact revenue, operating profit (EBIT) or cash flow and will not have any impact on the 2018 full year guidance. The transaction with Tele2 is expected to close in Q4 2018.
The re-audit has been performed in compliance with US audit standards (AICPA) on Com Hem’s previously issued IFRS financial statements, to comply with the SEC’s requirements to effect the statutory merger with Tele2.
A summary of the new financial statements may be found in appendix 1 of the Q2 2018 Interim Report that has been published today.
The adjustments made to the financial statements refer to reclassification of certain incentive programs from equity settled to cash settled treatment in the accounts. No change has been made to the program conditions compared to what has previously been disclosed, and the change of accounting treatment has no cash impact. As per June 30, 2018, equity has been reduced by SEK 43m due to the change in accounting treatment, however, once the two outstanding incentive programs have been settled, the change will have no impact on equity.
The preparations for the merger will now move into a phase of review of the merger documents by the SFSA and SEC. Once approved, the merger documents will be made public and a date will be announced for each of the Extraordinary General Meetings of Com Hem and Tele2. Com Hem expects the merger with Tele2 to close in the fourth quarter of 2018.
For queries, please contact:
Marcus Lindberg, Head of Investor Relations
Tel: +46(0)734 39 25 40
Fredrik Hallstan, Head of PR
Tel: +46 (0)709-48 52 72
About Com Hem Group
Com Hem Group offers broadband, TV, play and telephony services to Swedish households and companies. Our powerful and future-proofed network with speeds up to 1 Gbit/s, covers half of the country’s households, making the Com Hem Group an important driver of creating a digital Sweden. We bring our 1.45 million customers the largest range of digital-TV channels and play services via set top boxes as well as on-the-go for tablets and smartphones. The company was founded in 1983 and has approximately 1,100 employees. Com Hem Group is headquartered in Stockholm and operates through three subsidiaries; Com Hem AB, Boxer TV Access AB and iTUX Communication AB. In 2017, Group sales totalled SEK 7,136 million. Since 2014 the Com Hem share is listed on Nasdaq Stockholm. www.comhemgroup.com.