Polhem Infra Buys Telia Carrier from Telia Company

Posted on 10/06/2020

Telia Company reached an agreement with Polhem Infra for the sale of its international carrier business, Telia Carrier, for a value of SEK 9,450,000,000 on a cash and debt free basis. At the same time, Telia Company enters a long-term strategic partnership with Telia Carrier, securing continuous network solutions to Telia’s customers. The Board of Directors has also decided to propose an additional dividend of 0.65 SEK/share, bringing the total dividend for 2019 back to 2.45 SEK/share which was originally proposed in January this year. The transaction is expected to generate a capital gain of approximately SEK 7 billion at closing.

For 2019, Telia Carrier reported net sales of SEK 5,388 million, an EBITDA excluding IFRS-16 of SEK 500 million (SEK 888 million including IFRS-16) and capital expenditures of SEK 396 million resulting in EBITDA, excluding IFRS-16, less capital expenditures, of SEK 104 million. The agreed price for Telia Carrier equals an EV/EBITDA, excluding IFRS-16, multiple for 2019 of 18.9x.

Polhem Infra was founded 2019 and is jointly owned by the AP Funds, First AP Fund, Third AP Fund, and Fourth AP Fund.

Keywords: AP1, AP3, and AP4.

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