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Tuesday, 16.04.2024, 22:17
Eltel to sell its Estonian subsidiary to Technolines
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The closing of the transaction to sell the Estonian subsidiary, Eltel Networks AS, is subject to
approval by the Estonian Competition Authority and is expected to occur in the
final quarter of 2017 at the latest, Eltel,
listed Nordic provider of technical services for Infranets, said.
The transaction price, which is subject to changes in net working capital
until closing, is estimated to be approximately three million euros with an
expected cash flow impact of 2.5 million euros in the fourth quarter of 2017.
The transaction is estimated to have a negative impact of approximately one
million euros on group EBITA and Eltel
will record goodwill impairment of approximately 3.8 million euros related to
this divestment in the third quarter of 2017.
In February 2017, Eltel decided
to place its strategic focus on the group's core businesses in power and
communications in the geographical markets of the Nordic countries, Poland and
Germany.
Eltel Networks AS generated net sales of 26.3 million euros in 2016 and it employs
approximately 300 people at present.
Eltel AB is listed on
Nasdaq Stockholm.
«The Baltic Course» Is Sold and Stays in Business!
