Tele2 takes over Com Hem | Major Businesses | Business
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In a move that will shake up Sweden’s broadcast and communications industry, telco Tele2 Group has announced plans to merge with the country’s leading cableco Com Hem to create what the firms say will be a leading integrated connectivity provider.

comhem 10Jan2018 21The merger will be implemented by Tele2 effectively absorbing Com Hem, which will be dissolved and its assets and liabilities transferred to the telco when the Swedish Companies Registration Office registers the merger, expected to occur in the second half of 2018.

The cableco operates through four subsidiaries:  Com Hem AB, Boxer TV Access AB, Phonera Företag AB and iTUX Communication AB. Its board of directors have unanimously recommended that its shareholders of vote in favour of the merger, a move it says will offer a number of strategic benefits such as merging an ‘award-winning’ mobile network with the fastest national fixed network and the widest range of content in the market as well as providing the potential to unlock ‘meaningful’ long-term value through opex, capex and revenue synergies, which in total are expected to be around SEK900 million to be achieved within five years.

The enlarged Tele2 will be the second largest mobile telephony and fixed broadband provider in Sweden, and the market leader in digital TV. The result, says Tele2, will not only lead to improved customer experience but also position the company for enhanced growth. Moreover, it says that the combined concern will be positioned for enhanced growth capitalising on increased fixed and mobile data consumption underpinned by accelerated video demand, offering a rull range of complementary and ubiquitous high quality connectivity and digital services.

At completion of the merger, Com Hem chief executive Anders Nilsson will become the CEO of the merged Tele2. Commenting on the move he said: “Merging is the best possible next step for both companies as it will enable us to meet the demands of tomorrow and unleash the power for the best possible digital quality of life in Sweden. I am proud of the progress we have made during the last few years in improving our products and services leading to increased customer satisfaction, expanding our footprint while delivering on all our financial targets. The transaction will create significant benefits to Swedish individuals, households, businesses and to the shareholders of Tele2 and Com Hem.”

Added Tele2 CEO Allison Kirkby: “When I began my leadership role at Tele2 I had three overarching objectives: to drive returns through disciplined capital allocation; to focus the group on those markets where we knew we could win; and to become the leading connectivity provider in the Baltic Sea region with a strong emphasis on the consumer. With today’s announcement, all of these objectives have now been achieved and I am incredibly proud of the Tele2 team and all we have accomplished over the past four years. I am confident that, at completion, I will hand over a company in very good shape and with Anders Nilsson and the current Tele2 management team leading the organisation, it is in great hands to be even more successful going forward.”