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International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 15:05

Teo acquires Lithuanian mobile operator Omnitel from TeliaSonera

BC, Vilnius, 06.10.2015.Print version
IT and telecommunications company Teo acquires the mobile operator Omnitel from its current shareholder TeliaSonera. This allows Teo and Omnitel to meet the customers' increasing demand of converged offerings on the market including fixed, mobile, internet, TV and IT services, Teo said in a statement, cites LETA/ELTA.

"Consumers no longer make a distinction between fixed and mobile services and the demand for converged offerings are steadily increasing. The combination of Teo and Omnitel will create a leading, fully converged telecom operator and strengthen the market position through clear synergies and enhanced customer proposition," says Robert Andersson, Chairman of the Board at Teo.

 

The new business will be run by a single management team that will be led by Kestutis Sliuzas, current CEO of Teo. Both Kestutis Sliuzas and Dan Stromberg, CEO of Omnitel, will continue their current roles until the end of 2015.

 

Teo will acquire Omnitel for EUR 220 million on a cash and debt free basis and the combination is estimated to generate annual synergies of around EUR 10 million when implemented. Based on Omnitel's full-year 2014 results, the purchase price corresponds to an EV/EBITDA multiple of 7.8x or approximately 5.7x taking the estimated synergies into consideration. A fairness opinion has been delivered by KPMG to the Board of Teo in connection with the transaction.

 

Teo will use the external financing for acquisition of shares. And TeliaSonera's ownership in Teo will remain at 88.15% following the transaction. Minority shareholders of Teo will remain with owning the same number of shares. Therefore they will own 11.85% of Teo and indirectly Omnitel.






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