Telia to sell 76.6% stake in Yoigo to MASMOVIL for EUR 479 mn

TeliaSonera telecom operator
Telia Company has agreed to sell its 76.6 percent stake in the Spanish mobile operator Yoigo to MASMOVIL, a Spanish telecommunications operator, for EUR 479 million.

Yoigo has been valued at EUR 625 million.

“The divestment of Yoigo is an important milestone in our ambition to increase focus on our operations in the Nordics and Baltics,” said Johan Dennelind, president and CEO at Telia Company.

The agreed price implies an EV/EBITDA multiple of approximately 8.1x based on Yoigo’s 2015 results. The divestment is estimated to generate a capital gain of more than SEK 4 billion. Following debt adjustments, the transaction is expected to reduce net debt for Telia Company by approximately SEK 6 billion.

Yoigo has approximately 3.3 million subscriptions and a market share of 7 percent in Spain. Sales in 2015 were approximately SEK 8 billion.

MASMOVIL serves close to 1 million residential customers (mobile and VoIP services), 26,000 enterprises and is interconnected to more than 150 operators around the world.

Telia Company has agreed to divest Sergel Group, its Nordic and Baltic credit management services (CMS) and debt purchase business, to Marginalen for SEK 2,070 million on a cash and debt free basis. The proceeds will generate a positive net cash effect of approximately SEK 1,870 million and strengthen Telia Company’s balance sheet.

In 2015, Sergel had revenues of around SEK 830 million and contributed with SEK 206 million to Telia Company’s EBITDA excl. non-recurring items, reported within Telia Company’s Other Operations. In April, Telia Company announced a strategic review of Sergel.

Telia Company will launch Telia Zone, a new digital ecosystem and platform for broadband connections.