iliad Group makes $1.3 billion investment in Tele2

iliad Group makes $1.3 billion investment in Tele2

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The iliad Group confirms that Freya Investissement, an investment vehicle jointly owned by iliad and NJJ Holding (Freya), is buying 19.8% stake in Tele2 for $1.3 billion (SEK 13 billion).

Freya has entered into a binding agreement with Kinnevik AB (Kinnevik) to acquire the 19.8% stake in the business made up of Class A and Class B share in Tele2. Once the deal has been approved by relevant authorities, Freya will become the reference shareholder of Tele2 upon closing.

Once the acquisition of this stake in Tele2 goes through the iliad Group, through Freya, will further Tele2’s growth and to collaborate with its management team on innovation, convergence, and investments in next generation networks.

“The iliad Group and the Tele2 Group have a lot in common. We both believe in the power of innovation and the importance of an entrepreneurial mindset,” said Thomas Reynaud, director of Freya and CEO of the iliad Group.

“Our business sector in Europe is highly demanding. So, we have a great deal of respect for what Tele2’s shareholders, management and teams have achieved, and we’re delighted that Kinnevik has chosen Freya as Tele2’s new reference shareholder. We look forward to contributing to the next chapter of Tele2’s growth story!”

Under the terms of the agreement, Freya will acquire 20,733,965 A shares and 116,879,154 B shares from Kinnevik, representing approximately 19.8% of the share capital of Tele2 at approximately SEK 94.2 per share.

The transaction been split into three tranches. In the first tranche, Freya will acquire 31,329,972 B shares from Kinnevik equal to 4.5% of the share capital of Tele2 (3.5% of the voting rights).

In the second tranche, Freya will acquire 14,202,766 A shares from Kinnevik and 85,549,182 B shares representing, which along with Tranche 1 represents a total of approximately 18.8% of the share capital of Tele2 (28.8% of the voting rights).

The third and final tranche will see Freya acquire all remaining shares held by Kinnevik, i.e. 6,531,199 A shares which with Tranche 1 and Tranche 2, results in Freya owning approximately 19.8% of Tele2’s share capital.

The closing of tranche 1 will take place immediately, tranche 1 will close during the second quarter of 2024 and the closing of Tranche 3 to occur, the third quarter of 2024.

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