BONN (dpa-AFX) - German telecom giant Deutsche Telekom AG (DTEGY.PK) and Tele2 AB said that they have reached an agreement by which T-Mobile Netherlands or 'T-Mobile NL' will acquire Tele2's Dutch business or 'Tele2 NL' for a combination of cash and shares. The enlarged company will continue to operate as T-Mobile Netherlands and will also use the Tele2 brand in the market.
Upon closing of the transaction, Tele2 will receive a stake of 25% and a cash payment of 190 million euros. Deutsche Telekom will own 75 % of the shares in the enlarged company and a 1.1 billion euros intercompany loan receivable.
Prior to completion of the transaction, T-Mobile NL will spin out its mobile tower and rooftop assets into a separate legal entity which will remain in the full ownership of Deutsche Telekom.
The transaction, which is still subject to approval by the relevant competition authorities, is expected to close in the second half of 2018.
The enlarged T-Mobile NL will have pro-forma revenues in excess of 2.0 billion euros and around 4.3 million mobile postpaid subscribers and expects to generate annual run-rate synergies of some 150 million euros p.a.
Copyright RTT News/dpa-AFX