Telia Company

Telia Company AB (formerly TeliaSonera) is an international telecommunications group of the Baltic countries and Scandinavian countries.

History

2018

Telia sold the operator Coscom to the Government of Uzbekistan for $215 million

At the end of 2018, Telia sold the Uzbek Coscom (Ucell trademark) to local authorities represented by the State Committee for the Support of Privatization and the Development of Competition. The deal amounted to $215 million.

Sale of operator Kcell to Kazakhtelecom

On December 12, 2018, it became known that in Astana, an agreement was signed between Kazakhtelecom JSC and Telia Company and Fintur Holdings BV on the acquisition of 75% of the voting shares of Kcell JSC (Kcell).

Participants of the transaction - Kazakhtelecom JSC, Telia Company and Fintur Holdings BV signed an agreement on the acquisition by Kazakhtelecom of a total 75 percent stake in the Kazakh telecommunications operator Kcell JSC. As of December 2018, as part of the transaction, Kazakhtelecom acquires a 24% stake in Kcell from Telia Company and a 51% stake in Fintur Holdings BV (a joint venture of telecommunications companies Telia Company (58.55%) and Turkcell (41.45%), respectively.

In preparation for the transaction, Kazakhtelecom conducted an investment analysis, assessment and comprehensive audit of the results of Kcell's financial and economic activities in accordance with international standards for such transactions. The decision to acquire a 75% stake in Kcell was made by the Board of Directors of Kazakhtelecom JSC and the investment strategic committee of Samruk-Қazyna JSC.

As Telia President and Executive Director Johan Dennelind noted, this transaction is another important step to exit the Eurasia market and focus on the Northern and Baltic regions as part of the company's strategy. This is the sixth deal in the region since 2015.

2016: Name change to Telia Company

On April 18, 2018, TeliaSonera announced a change in its name to Telia Company AB.^[1]

2015: TeliaSonera says goodbye to CIS after corruption scandal

The Swedish-Finnish TeliaSonera decided to leave the macro-region of Eurasia, which mainly includes the CIS countries. The company's board of directors considered that the company should focus on the home market of Sweden and other European countries^[2].

TeliaSonera wants to get rid of seven mobile operators: five from countries in the CIS, as well as operators from Georgia and Nepal. Operators belonging to TeliaSonera in Tajikistan, Azerbaijan, Nepal and Kazakhstan are the market leaders, in Moldova, Uzbekistan and Georgia they occupy the second position in terms of the number of subscribers.

The dates when the Scandinavian company will sell them have not yet been determined. Operators from the Eurasia macro-region earned 20.5 billion Swedish kroner ($2.5 billion) in 2014 - this is about 20% of the group's total revenue. At the end of the year, they served 45 million subscribers - 60% of the total number of group subscribers.

Earlier, the story of TeliaSonera entering the Uzbek market became the subject of an anti-corruption investigation in Sweden. It turned out that simultaneously with the purchase of the local operator Coscom, the Scandinavian company paid a total of $250 million to fashion designer Gayane Avakyan, who was part of the close circle of Gulnara Karimova, the daughter of Uzbek President Islam Karimov.

2014: Telenor and TeliaSonera combine operations in Denmark

On December 3, 2014, Telenor and TeliaSonera entered into an agreement to merge operating divisions in Denmark and create a new joint venture. Each of the companies will own 50% of the shares. This will create a strong mobile operator that will increase investment in networks in the interests of our customers.

The new company will have a combined subscriber base of approximately 3.5 million people. The deal will create a sustainable operator with a total mobile market share of 40%, revenues of more than 9 billion Danish kroner and significant potential generated by synergy.

The need for consolidation in the Danish telecommunications market has been evident for some time, as operators have faced prolonged pressure on the revenue and profitability of companies. This limited opportunities for investment and innovation. Telenor and TeliaSonera have been collaborating since 2012, jointly owning a mobile network in Denmark. The parties have now agreed that the establishment of an independent and fully functional joint venture is a strategic priority for achieving synergies and adding value.

The goal of the merger of the two operating units is an annual efficiency increase of more than DKK 800 million, the maximum effect of which should be by 2019. The areas that will benefit most from synergies are distribution, sales and marketing, call centers, general and administrative expenses, networks and IT. Integration costs are expected to be within DKK 0.8 billion between 2015 and 2017.

A larger distribution network will be created, network connectivity and performance will be improved. In addition, the merger will place the joint venture in a better position to invest in attractive and user-friendly services. Combining fixed networks and services between the two companies will create an even more efficient broadband service provider for Danish consumers and companies.

"Denmark has strong competition, and we are facing long-term pressure on revenue growth and profitability, which makes consolidation of the two divisions inevitable. Combining the assets and client bases of Telenor and TeliaSonera in Denmark, the joint venture will become a strong operator. We will be able to offer our customers a high-quality network with excellent connectivity and better customer service in Denmark, "says Shelle Morten Jonsen, Executive Vice President of European Operations at Telenor

"We are taking the necessary and natural step of establishing a joint venture with Telenor based on an existing network partnership. By joining forces, we will be able to attract investment in Denmark in the interests of not only our customers, but also Danish society as a whole, "says Robert Andersson, Executive Vice President and Head of TeliaSonera in Europe

Management Structure

The Board of the new joint venture will equally include representatives of Telenor and TeliaSonera: only seven people, three on each side, and the Chairman of the Board, who is elected unanimously by representatives of the parties.

The search for a candidate for the position of CEO of the joint venture is already underway, both companies are confident that they will soon be able to choose a suitable candidate for this position.

Cost

Telenor and TeliaSonera have agreed that their businesses and related transactions have equal value, hence the agreement is based on equal ownership. The difference in net debt and changes in working capital from the moment of signing the agreement until its termination will have a monetary expression. Terms

Telenor and TeliaSonera discussed the term of the transaction. The conduct of this transaction requires the approval of the European Commission. The parties expect the consent of the European Union and intend to complete the deal within 2015. Transactions take place separately and operate independently of each other until the completion of the transaction.

2013: Net income decreased by 24.7%

The net profit of TeliaSonera AB owning the equity stake of the Russian mobile network operator"MegaFon", following the results of 2013 was reduced by 24.7% - to 14.97 billion Swedish kronur (2.33 billion dollars). In terms of one ordinary share, net income decreased to 3.46 kronor (0.54) dollar compared to 4.59 kronor (0.71 dollars) for 2012. The telecommunications giant's revenue fell 3% to 101.7 billion kronor ($15.86 billion).

2010

As of March 2010, 37% of the shares of the companies are owned by the Swedish government, 13.2% by the Finnish government, the rest is distributed among companies and private investors around the world.

TeliaSonera is the largest operator of the Baltic countries and Scandinavian countries in the segments of fixed, mobile and broadband Internet access. This is the 10th largest mobile company in the world, given its own subscriber base and the base of those operators in which TeliaSonera has shares (Turkcell, Yoigo, Megafon, Netcom and others).

TeliaSonera became the first operator in the world to put into commercial operation a fourth generation (4G) network based on LTE technology. From December 14, 2009, 4G communication is available to operator subscribers in Stockholm and Oslo; in the first quarter of 2010, the pilot segment of the 4G network will also be launched in Finland.

2007

For 2007, TeliaSonera is a telecom company and mobile operator in Sweden and Finland, also having assets in the markets of more than 20 countries in Northern, Eastern Europe, Asia, as well as in Spain. The number of subscribers of the company worldwide is more than 106 million people.

2002

The company TeliaSonera was founded as a result of the merger in 2002 of the Swedish and Finnish operators Telia and Sonera. The deal followed almost immediately after the failed agreement to merge Telia with the Norwegian telecommunications company Telenor, which became the main competitor of the combined company in the Scandinavian countries.

Prior to privatization, Telia was Sweden's main telephone monopoly. Separate brands Telia and Sonera continue to exist in the Swedish and Finnish telecommunications markets, respectively.

Notes