Telia to Sell Stake in the Mobile Operator Eircell to Vodafone

Vodafone agrees to acquire Eircom's mobile operator Eircell. Telia and KPN, owners of 14% and 21% respectively of Eircom, have given an undertaking to support the transaction.
The transaction contemplates a demerger of Eircell to Eircom's shareholders and will result in Vodafone making an offer to acquire the mobile business of Eircom. The shareholders of Eircom will be offered 0,9478 Vodafone shares for every two shares in Eircell received from the demerger. Upon completion of the transaction, Telia will receive approximately 147 million shares in Vodafone, which today would have a value of approximately SEK 5.1 billion. Telia have agreed not to sell those shares within a period of 30 days from receiving them.
The transaction will require more than 50% of Eircom shareholders voting in favour of the demerger of Eircell at an Eircom extra general meeting and more than 50% acceptances in relation to the offer from Vodafone.
In the interest of preserving an orderly market in Eircom shares during the period following the transaction, Telia have agreed not to dispose any of their stake in Eircom through capital markets transactions for a period of 90 days from the completion of the demerger of Eircell.
Morgan Stanley Dean Witter is advising Telia on their shareholding in Eircom.
Telia's Press Office: +46 8 713 58 30
Tobias Lennér, Head of IR +46 8 713 66 49
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