Sweden. Tele2 AB

The loan has been provided to finance the merger of the telecommunications company Tele2 and Com Hem, a Swedish provider of TV, broadband and telephony services. The merger will be implemented by Tele2 absorbing Com Hem.

The newly merged company will be a leading integrated connectivity provider and combine Tele2’s mobile network with Com Hem’s fixed network.

The merger will diversify operations and address evolving customer needs for seamless connectivity. The merged company will provide improved digital services for individual users, households and businesses.

The main owner of the merged company will be the Swedish investment company Kinnevik AB, with a stake of 27.3%. Kinnevik primarily invests in digital consumer brands.

This is the fifth loan agreed between NIB and Tele2 AB since 1994. The latest loan was signed in 2016 to finance the expansion of the company’s 4G mobile network roll-out in Sweden and the Netherlands.

Com Hem is a Swedish provider of TV, high-speed broadband and telephony for private users and businesses. The company serves approximately 1.5 million customers through fibre networks and digital terrestrial networks.

Tele2 AB is a European telecom operator headquartered in Stockholm, Sweden. The company has about 17 million customers in eight countries. Tele2 offers mobile services, fixed broadband and telephony, data network services and content service.

The merger is expected to create both revenue synergies and operational synergies for Tele2 and Com Hem, and support the optimisation of customer care, sales, marketing and administrative costs. The merger will allow Tele2 to become the second largest operator of mobile and fixed connectivity services in Sweden, and prepare for the roll-out of 5G services in the future.

The project is not expected to have any significant environmental impact.