Telia Company has launched a recommended cash offer to acquire Swedish broadband provider Bredband2 i Skandinavien for approximately 3.11 billion Swedish kronor.
The offer of SEK 3.25 per share represents a premium of nearly 35% to Bredband2's last closing price, the company said on Friday.
The bid aligns with Telia's strategy to streamline its operations and concentrate on its core Nordic and Baltic markets, following recent divestments of its Latvian operations and its TV and media business.
"The Offer is also in line with Telia's strategy to focus on what we do best – delivering world-class connectivity and communications services on which millions of customers rely every day," Telia President and CEO Patrik Hofbauer said in a statement.
Bredband2's board of directors has unanimously recommended that its shareholders accept the offer.
Telia said it has already secured irrevocable undertakings to accept the deal from shareholders representing about 50.2% of Bredband2's shares.
The company stated the combination would complement its premium products with Bredband2's value-oriented brand, enabling it to reach a broader customer base in the Swedish market.
Telia intends to maintain the Bredband2 brand and does not currently anticipate material changes to its operations or employees, according to the announcement.
The deal is conditional on receiving acceptances for more than 90% of Bredband2's shares and obtaining regulatory approvals.
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