Tele2 is selling its Croatian business to United Group for €220 million, with the deal expected to complete before the end of the year.
While regulatory approvals are required, the European Commission does not need to clear the deal before it can close. Tele2 is currently streamlining its operations and divesting holdings; last month it was bought out of its Kazakh joint venture by its partner Kazakhtelecom.
Tele2 is looking to lower its expenditure and pivot its focus towards certain key markets in which it aims to become a major integrated fixed/mobile player. After it identifies strategic areas for investment, it will allocate the proceeds of the United Group deal.
Anders Nilsson, president and CEO of Tele2, said: “We believe Tele2 Croatia will create even greater value for our customers going forward as part of United Group’s family of telecom and media companies. For Tele2, this opportunity enables an increased focus on successfully executing our strategy in the remaining footprint.”
United Group has telecom and media businesses in six countries across the Balkan region.