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Apr 23, 2018 7:02 AM CET

Updated financial framework for Tele2, post the proposed merger with Com Hem

The Board of Directors of Com Hem has agreed with Board of Directors of Tele2 to update the preliminary financial framework announced in January for the combined company of Tele2 and Com Hem, by introducing new and more specific policies for financial leverage and shareholder remuneration.

The merger will combine two highly cash generative businesses with clear synergies to create a leading connectivity provider in the Baltic Sea region. The Board of Directors of Tele2 has, since the January announcement of the preliminary financial framework, developed an updated and more specific financial framework, based on further analysis and dialogue with the companies’ shareholders.

The new financial leverage target and shareholder remuneration framework are as follows:

  • Enlarged Tele2 will seek to operate within a net debt/EBITDA range of between 2.5-3.0x and maintain investment grade credit metrics
  • Enlarged Tele2’s policy will aim to maintain target leverage by distributing capital to shareholders through:
    • An ordinary dividend of at least 80 percent of equity free cash flow; and
    • Extraordinary dividends and/or share repurchases, based on remaining equity free cash flow, proceeds from asset sales and re-leveraging of EBITDA growth

Based on this policy, Enlarged Tele2 is expected to distribute in excess of 100 percent of equity free cash flow to shareholders, through a combination of dividends and share repurchases. Tele2 and Com Hem believe that the prospects for cash returns to shareholders of the combined group, under this policy, are stronger than what could be expected for holders of Tele2 or Com Hem on a stand-alone basis.

The merger process is developing according to plan and is, as previously announced, expected to close in the second half 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)761 15 38 30

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 four subsidiaries; Com Hem AB, Boxer TV Access AB, Phonera Företag 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

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