Telia Company announced its agreement to sell tower business in Sweden to Brookfield and Alecta for SEK 11.224 billion.
The transaction price corresponds to an enterprise value for 100 percent of the shares of SEK 11.224 billion on a cash and debt free basis and represents an EV / normalized EBITDA 2021 multiple of 28.2x. The transaction is subject to customary regulatory approvals and closing is expected in Q3 2022.
In June 2021, Telia announced an agreement to sell a portion of its tower business in Norway and Finland to Brookfield and Alecta and completed the deal on December 29, 2021.
The telecom tower assets are placed in Telia Towers AB which is 51 percent owned by Telia with the remaining 49 percent owned by Brookfield and Alecta. The strategic partnership is now expanded to include Telia Company’s towers in Sweden.
“Telia has a clear strategy to develop and crystalize its digital infrastructure by joining forces with strategic partners. Tower infrastructure is an essential foundation for the digitalization of the Nordics and Baltics,” Allison Kirkby, Telia President and CEO, said.
Telia expects to receive SEK 5,500 million for the 49 percent stake in its Swedish tower business. Telia is currently operating in the lower part of its net debt / adjusted EBITDA target range of 2.0-2.5x.
In connection with closing of the transaction, Telia Company will enter into an anchor tenant agreement with Telia Towers in Sweden.
