Iliad Seeks Expansion with Binding Offer for Tele2 Stake
French telecommunications giant Iliad has made a bold move to enter the Swedish and Baltic markets, submitting a binding offer to purchase a €1.16 billion stake in Tele2. iliad tele2
The deal, if approved, would represent a roughly 20% ownership stake in Tele2 through Iliad’s investment vehicle, Freya, which is jointly owned with NJJ Holding.
Why This Move Matters
Iliad, known for its disruptive presence in the French telecom sector, has expressed strong interest in expanding its European footprint. This acquisition would signal that the company is turning its attention northward. The deal could have significant ramifications for the competitive dynamics in the region’s telecommunications markets.
The transaction highlights Iliad’s willingness to make significant investments in its expansion strategy. Moreover, the potential partnership with Tele2 could create opportunities for synergies in network strategies, service innovations, and overall cost efficiencies.
The statement added that the acquisition “of this strategic stake will offer the iliad Group, through Freya, an opportunity to further Tele2’s growth and to collaborate with Tele2’s management team on innovation, convergence, and investments in next generation networks.”.
Tele2 – a profitable and growing challenger
Tele2, a company listed on Nasdaq Stockholm Large Cap, has an established track record as a telecom challenger in Northern Europe and is a leader in Sweden and the Baltic region. The company’s high-quality brand and assets, particularly in infrastructure, have contributed to its long-term operational and financial performance.
As a shareholder, Freya intends to be a supportive, long-term investor and engage with Tele2’s governing bodies and management team, using the experience of Freya’s team to further Tele2’s growth.
As a special investment vehicle jointly owned by iliad and NJJ Holding, Freya has significant and relevant telecom expertise and is ideally placed to help Tele2 continue to perform successfully. Both iliad and NJJ Holding are owned by Xavier Niel, a renowned entrepreneur and major long-term investor in the telecom sector. Xavier Niel has investments in nine countries in Europe, with nearly 50 million active subscribers and revenue of more than €10 billion. iliad is the fastest-growing international operator in Europe with its presence in France, Italy and Poland, while NJJ has a presence in Switzerland, Ireland, Monaco, Cyprus, and Malta.
The transaction has been split into three tranches:
• In Tranche 1, Freya will acquire from Kinnevik 4.5% of the share capital of Tele2 and 3.5% of the voting rights. The closing of Tranche 1 will take place shortly after signing.
• In Tranche 2, Freya will acquire shares from Kinnevik B, representing, in aggregate with Tranche 1, approximately 18.8% of the share capital of Tele2 and 28.8% of the voting rights. The closing of Tranche 2 is conditional upon receiving foreign direct investment approvals in the relevant countries.
• In Tranche 3, Freya will acquire all remaining shares held by Kinnevik, which, in aggregate with Tranche 1 and Tranche 2, will result in Freya owning about 19.8% of Tele2’s share capital. The closing of Tranche 3 may be, if applicable, conditional upon receiving antitrust approval.
The parties expect the closing of Tranche 2 to occur during the second quarter of 2024 and the closing of Tranche 3 to occur, at the latest, during the third quarter of 2024.
If all goes according to plan, Freya will own less than 30% of the voting rights in Tele2.
A lot in common
Thomas Reynaud, Director of Freya and CEO of the iliad Group (pictured), says: “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. 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!”
What’s Next iliad tele2
The proposed transaction still faces regulatory hurdles and shareholder approvals before it can be finalized. If successful, Iliad could become a major force in the Scandinavian and Baltic telecommunications landscapes.
Here are some indicative prepaid eSIM card prices for Europe from a few of the best eSIM companies:
