TeliaSonera abandons Yoigo sale
TeliaSonera has abandoned plans to sell its Spanish operator Yoigo after bidders failed to meet the company’s valuation.
Vodafone and France Telecom Orange are reportedly interested in acquiring the Nordic carrier’s 76.6% stake in Yoigo,with TeliaSonera hoping to fetch approximately $1.3 billion.
TeliaSonera has however declared it will not sell the subsidiary, which it considers as a non-core asset, for less than its estimated value.
"Yoigo has enormous potential for further development, but follows a market strategy that does not match that of our other activities,” said Per -Arne Blomquist, CEO of TeliaSonera, in a statement.
“We had therefore prepared to disengage the asset subject to obtaining prices taking into account the potential."
Blomquist confirmed TeliaSonera will now turn its attentions towards developing the company and will not look for any more prospective bidders.
"Since this condition was not met, we stopped the sales process and prepare for the further development of the company," he added.
Yogio has been up for sale since July without attracting a bid matching its price.