TeliaSonera executes on new strategy – Teo and Omnitel join forces

TeliaSonera executes on its new strategic focus by combining its two Lithuanian
subsidiaries. The fixed line operator Teo and the mobile operator Omnitel have
decided to join forces, which strengthens TeliaSonera’s core business in the
Nordics and Baltics.
“Consumers no longer make a distinction between fixed and mobile services and
the demand for converged offerings are steadily increasing. The combination of
Teo and Omnitel will create a leading, fully converged telecom operator and
strengthen the market position through clear synergies and enhanced customer
proposition,” says Robert Andersson, Chair of the Board of Teo.

Teo will acquire Omnitel for EUR 220 million on a cash and debt free basis and
the combination is estimated to generate annual synergies of around EUR 10
million when implemented. Based on Omnitel’s full-year 2014 results, the
purchase price corresponds to an EV/EBITDA multiple of 7.8x or approximately
5.7x taking the estimated synergies into consideration. A fairness opinion has
been delivered by KPMG to the Board of Directors of Teo in connection with the
transaction.

Teo will use external financing for the acquisition and TeliaSonera’s ownership
in Teo will remain at 88.15 percent following the transaction. The acquisition
is expected to be finalized in first quarter of 2016 at the latest.

TeliaSonera AB discloses the information provided herein pursuant to the Swedish
Securities Markets Act and/or the Swedish Financial Instrument Trading Act. The
information was submitted for publication at 08.00 a.m. CET on October 6, 2015.

For more information, please contact the TeliaSonera press office +46 771 77 58
30, press@teliasonera.com, visit our
Newsroom (http://www.teliasonera.com/en/newsroom/) or follow us on Twitter
@TeliaSoneraAB (https://twitter.com/TeliaSoneraAB).

Forward-Looking Statements
Statements made in the press release relating to future status or circumstances,
including future performance and other trend projections are forward-looking
statements. By their nature, forward-looking statements involve risk and
uncertainty because they relate to events and depend on circumstances that will
occur in the future. There can be no assurance that actual results will not
differ materially from those expressed or implied by these forward-looking
statements due to many factors, many of which are outside the control of
TeliaSonera.

TeliaSonera provides network access and telecommunication services in the Nordic
and Baltic countries, the emerging markets of Eurasia, including Russia and
Turkey, and in Spain. TeliaSonera helps people and companies communicate in an
easy, efficient and environmentally friendly way. Our ambition is to be number
one or two in all our markets, providing the best customer experience, high
quality networks and cost efficient operations. TeliaSonera is also a leading
wholesale provider who owns and operates one of the world’s most extensive fiber
backbones. In 2014, net sales amounted to SEK 101.1 billion, EBITDA to SEK 35.2
billion and earnings per share to SEK 3.35. The TeliaSonera share is listed on
Nasdaq Stockholm and Nasdaq Helsinki. Read more at www.teliasonera.com.

Recommended