Press release Tele2 Group Aug 13 2007, 9:02 AM CET
Tele2 Russia signs 10-year national roaming agreement with Vimpelcom and divests its Irkutsk operation for SEK 1.6 billion
Stockholm - Tele2 AB, ("Tele2"), (Stockholm Stock Exchange: TEL2 A and TEL2 B), Europe's leading alternative telecom operator, today announced that it has signed a 10-year national roaming agreement with Vimpelcom. In connection with the signing of this agreement, Tele2 has agreed to sell its operation in the Russian region of Irkutsk to Vimpelcom. Vimpelcom will pay approximately SEK 1.6 billion in cash on a debt and cash free basis. The transaction has been approved by the Russian competition authorities.
The roaming agreement between Tele2 Russia and Vimpelcom will enable Tele2 customers seamless roaming at low prices across Vimpelcom's network in Russia, where Tele2 has no mobile network presence. Roaming with Voice and GPRS services will be made available within six months.
Johnny Svedberg, Executive Vice President Operations and Market Area Director Baltic & Russia, comments: "I'm pleased to have signed a 10-year national roaming agreement with Vimpelcom that will provide seamless roaming virtually throughout Russia at very competitive prices for our customers."
Tele2 Irkutsk had 571,000 mobile subscribers at the end of Q2 2007. In 2006, Tele2 Irkutsk had revenues of SEK 237 million and EBITDA of SEK 79 million. The transaction will have a positive one time effect on Tele2 of approximately SEK 1.2 billion.
Johnny Svedberg comments: "The divestment of the Irkutsk operation is directly connected with the signing of the strategically important national roaming agreement and should not be seen as a change to Tele2's strategy to continue expand its Russian operations. On the contrary, we expect to make additional acquisitions in the Russian market during the remainder of the year."
Further information can be obtained from:
Lars-Johan Jarnheimer, President and CEO Tele2 AB, Telephone: +46 8 5626 4000
Johnny Svedberg, Executive Vice President Operations, Telephone: +46 8 5626 4000
Lars Torstensson, Investor Inquiries, Telephone: +46 702 73 48 79
Tele2 is Europe's leading alternative telecom operator Tele2's mission is to provide cheap and simple telecoms for everyone in Europe. Tele2 always strives to offer the market's best prices. We have 29 million customers in 21 countries. Tele2 offers fixed and mobile telephony, broadband, data network services and cable TV. Ever since Jan Stenbeck founded the company in 1993, it has been a tough challenger to the former government monopolies and other established providers. Tele2 has been listed on OMX Nordic Exchange since 1996. In 2006 we had operating revenue of SEK 50.3 billion and we reported an operating profit (EBITDA) of SEK 5.7 billion.