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TARK GRUNTE SUTKIENE advises Tele2 Eesti on acquisition of Televõrgu AS

On 16 January, Tele2 Eesti and the state-owned energy giant Eesti Energia entered into an agreement for the purchase of Eesti Energia’s subsidiary Televõrgu AS for EUR 25 million. Being one of Estonia’s leading telecommunications companies, Televõrgu AS operates a nationwide fibre-optic telecommunications network and offers wireless internet access services named Kõu. The transaction will be closed after permission has been received from the Estonian Competition Authority.

Televõrgu AS was established in 2001. Until 2025, the company will have in its possession 1,600 kilometres of fibre-optic telecommunications network and 135 base stations allowing for rapid transmission of huge volumes of data and voice communication throughout Estonia. Through the Baltic Optical Network alliance, Televõrgu AS is also a leading data communication operator in the Baltic countries.

Tele2 has almost 490,000 clients in Estonia. The company is part of the International Tele2 group having a client base of more than 34 million in 11 countries. Tele2 has been listed on the NASDAQ OMX Stockholm stock exchange from the year 1996.

TARK GRUNTE SUTKIENE represented Tele2 Eesti in negotiations over the agreement and helped conduct a due diligence investigation and prepare a notice of concentration. The lawyers acting for the company were partner Risto Vahimets, senior associate Allar Aru and associates Tanel Tark and Hannes Küün.