TeliaSonera Buys Danish MVNO

TeliaSonera has announced that it is buying Denmark's Debitel Danmark, an MVNO with approximately 300,000 mobile subscriptions. The acquisition includes debitel's 50 percent share in DLG-debitel I/S, operating under the brand DLG Tele.

"This transaction strengthens our position on the Danish mobile market and emphasizes our ability to progress successfully with our strategy to enhance growth in our home markets" comments Anders Igel, President and CEO of TeliaSonera.

TeliaSonera has agreed to acquire 100% of the outstanding shares in debitel Danmark in Denmark (debitel) from debitel (owning 78.2%), Fleggaard Holding (8.8%) and Dansk Landbrugs Grovvareselskab (DLG) (13%).

The purchase price for 100 percent of debitel, on a debt free basis, could be up to approximately SEK 1,270 million (EUR 140 million), of which TeliaSonera will pay a cash consideration of SEK 860 million (EUR 95 million) at closing. The remaining purchase price is capped at SEK 410 million (EUR 45 million) and the payment is dependent on the development of debitel during the following six months.

In addition to the stand alone valuation of debitel, the transaction is based on transferring debitel's traffic from other mobile networks into Telia Denmark's mobile network

debitel will continue to operate as a service provider under a separate brand on the Danish market and there will be no major changes in the operations of the company. "

Posted to the site on 1st February 2007