Tele2 bids for Dutch telecom company Versatel

Tele2 bids for Dutch telecom company Versatel

Swedish telecoms provider Tele2 has shown interest in collaborating with the Dutch telecom company Versatel and they have offered an impressive 1.34 billion euros for this deal. This latest news helped Versatel improve its share prices in the stock exchange by more than 12% on Monday’s trading.

They are interested in selling off Versatel’s German business to investment funds. They were advised to do so by the British private equity group Apax Partners for about 565 million euros on an enterprise-value basis after the deal is finalized and completed. This was announced in a joint statement released by the company.

The deal would also help both the businesses improve their market positions by utilizing each other’s resources and technical expertise. Versatel has an enterprise value of 1.13 billion euros while the market value of Tele2 is around $4.3 billion. If the deal goes through, Tele2 plans to offer 2.20 euros per share for Versatel’s outstanding ordinary shares. In addition to this, they would also be offering around 132,274 euros per note for the firm’s outstanding convertible notes.