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Unlisted Iliad, founded and majority owned by French billionaire Xavier Niel, is seeking to push consolidation of Europe’s telecoms sector. Picture: REUTERS/SARAH MEYSSONNIER
Unlisted Iliad, founded and majority owned by French billionaire Xavier Niel, is seeking to push consolidation of Europe’s telecoms sector. Picture: REUTERS/SARAH MEYSSONNIER

Copenhagen — French investor Xavier Niel and his Iliad telecoms group have agreed to buy a 19.8% stake in Swedish telecoms operator Tele2 for 13-billion crowns ($1.26bn), investment company Kinnevik said in a statement on February 26 2024.

Niel and his companies will buy the stake from Kinnevik, the largest shareholder in Tele2, through Freya Investissement. 

The transaction will take place in three steps with a first close of 2.9-billion crowns, while the rest is conditional on regulatory approvals, Kinnevik said in a statement.

Iliad will hold less than 30% of the voting interest in Tele2 after completion of the transaction, Kinnevik said.

The total proceeds of 13-billion crowns correspond to an average blended purchase price of 94.2 crowns per Tele2 Class A and Class B share, implying a 13% premium to the closing price of the Tele2 Class B share on February 23.

A woman speaks on a mobile phone in Milan, Italy. Picture: REUTERS/STEFANO RELLANDINI/FILE
A woman speaks on a mobile phone in Milan, Italy. Picture: REUTERS/STEFANO RELLANDINI/FILE

Unlisted Iliad, founded and majority owned by French billionaire Xavier Niel, is seeking to push consolidation of Europe’s telecoms sector.

In 2022, Niel took control of a 2.5% stake in Vodafone. The company offered more than €11bn to buy Vodafone Italy outright the same year but was rebuffed, which lead to a sweetened offer in January 2024, which was also rejected by Vodafone.

Reuters

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