Press release Tele2 Group Nov 27 2008, 8:00 AM CET
Tele2 Russia acquires Digital Expansion's mobile network in the region of Kaliningrad for approximately SEK 150 million
Stockholm - Tele2 AB, ("Tele2"), (OMX Nordic Exchange: TEL2 A and TEL2 B), today announced that it has acquired Digital Expansion's mobile network in the region of Kaliningrad. Tele2 will pay in cash approximately SEK 150 million on a debt free basis.
Digital Expansion operates an 1800 MHz GSM licence in the region of Kaliningrad with a population of approximately one million. Kaliningrad is an enclave inside the European Union and one of Russia's fastest growing regions. The current customer base is 5,000. The acquired company will be integrated into Tele2's existing operations and will benefit from Tele2's successful brand and product strategies in Russia.
Donna Cordner, Market Area Director Russia, comments: "The acquisition of Digital Expansion is an additional step in our continued expansion in Russia. We think the successful economic climate of the region and potential synergies given the proximity to other Tele2 operations in Europe and the Baltic region will allow us to replicate our successful operational model. After completion of the transaction, Tele2 Russia will be present in 35 regions with total population coverage of approximately 61 million."
Further information can be obtained from:
Harri Koponen, President and CEO, Tel: +46 8 5626 4000
Donna Cordner, Market Area Director Russia, Tel: +46 8 5626 4000
Lars Torstensson, Investor Inquiries, Tel: +46 702 73 48 79
Tele2 is one of Europe's leading alternative telecom operators. Tele2's mission is to provide price leading and easy to use communication services. Tele2 always strives to offer the market's best prices. We have 24 million customers in 11 countries. Tele2 offers mobile services, fixed broadband and telephony, data network services, cable TV and content services. 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 the OMX Nordic Exchange since 1996. In 2007, we had net sales of SEK 40.1 billion and reported an operating profit (EBITDA) of SEK 6.3 billion. For more information, visit www.tele2.com.