Telia Company divests its holding in Yoigo to MÁSMÓVIL

Via TeliaSonera Newsroom

Jun 21, 2016

Tue, Jun 21, 2016 09:00 CET

Telia Company has agreed to sell its 76.6 percent holding in the Spanish operator Yoigo to MÁSMÓVIL, a Spanish telecommunications operator. The transaction price is based on an enterprise value of EUR 625 million for 100 percent of Yoigo. The deal is subject to approval from the Spanish competition authorities. The transaction is expected to close during the third quarter of 2016.

“The divestment of Yoigo is an important milestone in our ambition to increase focus on our operations in the Nordics and Baltics. I am happy that we have an agreement with MÁSMÓVIL, who will be able to leverage a small but great and agile team into a combined unit, creating an even stronger challenger in the Spanish market,” says Johan Dennelind, Telia Company’s President and CEO.

The transaction price is based on an enterprise value for Yoigo of EUR 625 million, of which Telia Company’s 76.6 percent share corresponds to EUR 479 million. The agreed price implies an EV/EBITDA multiple of approximately 8.1x based on Yoigo’s 2015 results. The divestment is estimated to generate a capital gain of more than SEK 4 billion. Following debt adjustments, the transaction is expected to reduce net debt for Telia Company by approximately SEK 6 billion. Capital gain and impact on net debt are subject to timing of closing of the transaction and FX movements.

Yoigo has approximately 3.3 million subscriptions and a market share of 7 percent in Spain. Sales in 2015 were approximately SEK 8 billion. Telia Company’s ownership in Yoigo is 76.6 percent. As part of the transaction, the minority owners ACS (17.0%), FCC (3.4%) and Abengoa (3.0%) will continue to have an exposure to the combined entity. Telia Company, and the minority shareholders, are entitled to a break-up fee of EUR 30 million if the transaction would not be completed.

About MÁSMÓVIL

The MÁSMÓVIL Group is an integrated telecommunications operator providing universal telecommunications services (fixed, mobile, ADSL, fiber, datacenter, value added services) to multiple market segments (residential, business and operators). Through a number of acquisitions, MÁSMÓVIL has become one of the leading mobile operators in Spain. MÁSMÓVIL today serves close to 1 million residential customers (mobile and VoIP services), 26,000 enterprises and is interconnected to more than 150 operators around the world. MÁSMÓVIL is publicly listed in Spain since March 2012.

Telia Company AB discloses the information provided herein pursuant to the Swedish Securities Markets Act and/or the Swedish Financial Instrument Trading Act. The information was submitted for publication at 09.00 on 21 June, 2016.

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