Telia Company has divested Tajik operator Tcell

Telia Company has sold its 60 percent holding in Central Asian Telecommunications Development B.V. (CATD), which controls CJSC “Indigo Tajikistan” (Tcell), to the Aga Khan Fund for Economic Development (AKFED).

“By divesting Tcell we have now taken a second step in our strategy to leave region Eurasia and we maintain the ambition to complete our exit in 2017,” says Johan Dennelind, President and CEO, Telia Company.

The transaction with AKFED, the 40 percent minority owner of CATD, has already been closed.

The transaction price is based on an enterprise value of USD 46.2 million, of which Telia Company’s 60 percent share corresponds to USD 27.7 million. The agreed price implies an EV/EBITDA multiple of approximately 2.9x based on Tcell’s result for 2016. The capital loss before reclassification of accumulated negative foreign exchange differences to net income was SEK 0.0 billion. The transaction had no material cash flow effect.

As a result of the transaction with AKFED, all the tax liabilities now belong to Tcell and its new shareholder.

Telia Company has together with external risk consultants conducted due diligence and background checks of the buyer in this transaction.

“We are very grateful for the hard and dedicated work that Tcell’s employees have contributed with and we wish them the best of luck with the new majority owner. AKFED is an established investor in the region and is in the best possible position to develop Tcell further,” says Johan Dennelind.