TeliaSonera has agreed to acquire 7.87% of the shares in TEO LT from East Capital for €0.637 (LTL2.20) per share and will thereby increase its ownership to 76.16% (from the current 68.29%).
TeliaSonera will also invite all other shareholders to participate in a voluntary takeover bid for the remaining outstanding shares.
TeliaSonera will pay a total cash consideration of €38.9 million (LTL134.5 million) or approximately SEK347.5 million for the shares acquired from East Capital.
Closing is scheduled to take place on 10 May 2012. East Capital will receive a dividend of LTL0.20 (€0.058) per share as decided at the shareholders' meeting on 24 April 2012, with the dividend record date of 9 May 2012.
TeliaSonera will also launch a voluntary takeover bid for the remaining outstanding shares in TEO LT as soon as all related approvals are received.
TeliaSonera will offer €0.637 (LTL2.20) per share in cash, corresponding to a total amount of approximately €118.0 million (LTL407.3 million). The takeover bid represents a premium of 5.3% compared with the closing market price as of 7 May 2012. The takeover bid is not conditional and has no minimum threshold of shares tendered.
"With this acquisition we continue to execute on our strategy to increase the ownership in our core holdings. Following our agreement to acquire East Capital's stake in TEO LT, we have also decided to give the same opportunity to all shareholders. If they find our takeover bid attractive, all shareholders will be able to sell their shares at the same price as East Capital received, but we intend to keep the company listed as long as there is a reasonable free float," said Per-Arne Blomquist, Executive Vice President and CFO of TeliaSonera.
"East Capital has been a long-term shareholder of TEO involved in the company's success over several years. TEO is a prime example of the kind of investments we look for in Eastern Europe. This was a good opportunity to realize the value of our investment, we look forward to see TeliaSonera continue to develop the potential in TEO," says Peter Elam Håkansson, Head of the Investment Management team at East Capital.
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