Tele2 AB to acquire the majority share in mobile operator NEO in Kazakhstan for approximately SEK 550 million

NEO operates a 900 MHz GSM license in Kazakhstan with a population of approximately 16.2 millions. Tele2 will own 51% of the shares with options to buy the remaining 49% after 5 years from closing. The acquired company will be consolidated into the Tele2 group and will benefit from Tele2's successful brand marketing and product strategies.

The other shareholder will be Asianet Holdings B.V. (“Asianet”). Asianet is part of the Amun group of companies, a well established  private investment group managed by Amun Capital Advisors KZ LLP (“Amun Capital”).

The following should be considered when estimating operational performance of NEO:

• The company should have a market share of more than 20 percent within 4 years of commercial re-launch
• NEO should be able to reach EBITDA break-even within 2-3 years after commercial re-launch
• Accumulated Capital Expenditure between 2010-2013 will amount to SEK 2 400 – 2 600 million

Harri Koponen, President and CEO, comments: "The acquisition of a mobile operation in Kazakhstan goes hand in hand with our ambition to carefully look for complementary assets in or close to our mobile footprint. Given the proximity of the Kazakhstan asset to other Tele2 operations, this acquisition should provide the potential of synergies deriving from the replication of our successful operational model."

Niklas Sonkin, EVP and Market Area Director Central Europe, comments: “Kazakhstan is a country full of opportunities where Tele2 will build on its solid experience as a leading mobile challenger. Tele2 will help to develop NEO so that it can offer the Best Deal to all customers in Kazakhstan.”