Belgacom buys Tele2 Luxembourg for €207m

Belgacom has acquired Tele2 Luxembourg operating under its brand name Tango. Tele2 Luxembourg provides mobile, fixed voice and DSL services in Luxembourg, according to Telecompaper.

The Belgian incumbent intends to maintain its residential mobile offering under the Tango brand and gun for the corporate market by leveraging its existing ICT business through Telindus Luxembourg.

Tele2 Luxembourg has 238,000 mobile customers, 26,000 fixed line customers and 10,000 broadband customers. As part of the transaction, Belgacom also acquires Tele2's Liechtenstein fixed and mobile operations.

Belgacom is acquiring all shares of Tele2 Luxembourg for €207 million on a debt and cash free basis. Given Belgacom's operations in Belgium and its existing presence in Luxembourg, it is confident to achieve synergies of at least €25 million, Telecompaper reported.

Tele2 Luxembourg reported €31 million EBITDA in 2007 and €6.15 million for the first quarter of 2008. This transaction is subject to relevant approvals of the appropriate antitrust authorities. For Tele2, the transaction will result in a positive one-off item of about SEK 1 billion (€106 million).