TeliaSonera closes transaction and acquires debitel Danmark A/S
- 2007-04-11 11:19 UTC
TeliaSonera AB has today closed the acquisition of 100 percent of the shares in debitel Danmark A/S. The transaction was approved by the Danish Competition Authority on March 29, 2007. The transaction also includes debitel’s 50 percent share in DLG-debitel I/S, operating under the brand DLG Tele.
“The transaction strengthens our position as number two in the Danish mobile market. Together with the acquisition of the 29 Telekæden stores in January, it will make us well prepared for future growth,” comments Kenneth Karlberg, President Business Area Mobility Services at TeliaSonera.
The acquisition was announced on February 1, 2007, and following approval from the Danish Competition Authority on March 29, 2007, the parties closed the transaction on April 11, 2007. The total cash payment for 100 percent of debitel Danmark could be up to approximately SEK 1,325 million (EUR 143 million). At closing TeliaSonera paid a cash consideration of EUR 63 million. In addition debitel’s debt of EUR 35 million to the seller was settled. The remaining payments are capped at EUR 45 million plus interest and are dependent on the development of debitel during the following six months after closing.
As of December 31, 2006, debitel and DLG Tele had approximately 300,000 mobile subscriptions. debitel will continue to operate as a service provider under a separate brand on the Danish market. There will be no major changes in the operation of the company.