Tele2 Sells French MVNO to Virgin Mobile

­Tele2 has announced that is has sold its French operations to Virgin Mobile for approximately SEK 575 million (US$83 million) on a debt and cash free basis. Completion is expected following approval from relevant regulatory authorities.

At the end of June 2009, Tele2 France had approximately 429,000 mobile customers.

Tele2 France affected Tele2's operating revenue in 2008 and the H1 2009 by SEK 1,233 million and SEK 637 million, respectively, and EBITDA by SEK 6 million and SEK 55 million, respectively.

The transaction will result in a goodwill loss of approximately SEK 526 million (US$76 million) in Q3 2009. As an effect of the divestment, Tele2's French operation will be treated as discontinued operations.

Virgin Mobile France will have just over 1.6 million subscribers once the transaction is completed. The French MVNO is a joint venture between the Virgin Group and Carphone Warehouse.

Posted to the site on 16th October 2009