Tele2 to acquire majority stake in Network Norway

Sweden’s Tele2 has announced that Tele 2 Sverige AB has reached an agreement to acquire the stakes held by the three largest shareholders of Network Norway, the country’s third GSM licensee. According to a press release issued by the company, it will acquire 66.65% of Network Norway’s outstanding shares, 75.01% of its outstanding warrants and 67.76% of its fully diluted share capital, including warrants and options, having reached an agreement with Orkla ASA, Hafslund Venture II and Katalysator Telekom AS. Tele2 will pay around SEK890 million (USD140 million) in cash for the shares and warrants in a deal that values Network Norway at SEK1.7 billion. It is understood that Tele2 will now look to make an offer to all remaining shareholders of Network Norway. The deal is expected to be completed once approval from the relevant regulatory authorities has been gained, while it is also conditional ‘on receiving acceptances representing more than 90% of the total outstanding shares of the company and such number of warrants which together with the shares acquired constitute more than 90% of the outstanding shares and warrants of the company’. Commenting on the development, Thomas Ekman, Market Area Director Nordic at Tele2, said: ‘The acquisition of Network Norway will make Tele2 the clear number three mobile operator in the Norwegian telecom market with more than one million customers and gives us the operational leverage that we need to complete Norway’s third mobile network. We have had a good partnership with Network Norway through our joint venture Mobile Norway. With this acquisition, Tele2 will be able to take the leading price position and truly challenge the duopoly of the Norwegian market by delivering the best deal to all mobile customers in the country.’

As indicated in the database GLOBALCOMM TeleGeography, Tele2 and Network Norway in September 2007 announced an alliance where both companies indicated that they  join forces to carry Norway , the third GSM network. Under terms of the  that Tele2 Norway AS has acquired 50% stake in the , AMI , holder of the GSM-900 and 50/50 joint venture, phones in Norway, was established with the aim of building a wireless network that covers a significant portion of the population in Norway.

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