Iliad Group's Investment Arm Freya Investissement Acquires Stake in Tele2

In a major move within the European telecom industry, the Iliad Group has announced a significant investment in Tele2 via its investment vehicle, Freya Investissement, a joint entity with NJJ Holding. A binding agreement has been reached with Kinnevik AB to purchase a substantial share in the telecom company, signaling a strategic partnership and a push for growth and innovation in the sector.

Acquisition Details

The deal entails Freya Investissement gaining approximately 19.8% of Tele2's share capital, consisting of both Class A and Class B shares, for a total cash consideration of around SEK 13.0 billion (€1.16 billion). This acquisition positions Freya as the reference shareholder of Tele2, pending regulatory approvals, and marks a significant investment toward shaping the future of the telecom market in Sweden and the Baltics.

Transaction Structure

The acquisition is structured into three separate tranches, with the first allowing Freya to purchase a 4.5% share capital immediately after the signing. The second and third tranches, contingent on foreign direct investment and potentially antitrust approvals, will complete the acquisition of the 19.8% share capital.

Financial Impact and Financing

Financing for the transaction is split between iliad holding, which will contribute up to €500 million, and the rest by NJJ Holding and Freya. The iliad Group ensures that the investment will not affect its leverage and will only slightly impact iliad Holding's leverage, indicating a strategic and well-planned financial approach to the acquisition.

Executive Comments

Thomas Reynaud, director of Freya and CEO of the iliad Group, expressed great enthusiasm for the shared values and ambitions between the iliad and Tele2 Groups. Reynaud highlighted the respect for Tele2's achievements and conveyed excitement to collaborate and contribute to Tele2’s continuing growth narrative.

About the iliad Group

The iliad Group has established itself as an inventive force in the European telecoms landscape, notable for its pioneering triple-play box and compelling offers. With a robust presence in France, Italy, and Poland, the iliad Group's subsidiaries serve millions of subscribers, further bolstering its position as Europe's sixth-largest telecom operator. This new investment underscores the Group's commitment to expanding its influence and innovative capacity within the telecom industry.

Iliad, Tele2, Investment