Swedish telco aims to complete merger by end of 2018, subject to regulatory approvals

Tele2 and Com Hem have both been granted the approval of shareholders for their plan to merge their businesses in Sweden.

Both operators held an EGM on Friday at which shareholders gave the green light to the deal, which was announced in January and will bring together Tele2’s mobile business and Com Hem’s fixed broadband and TV business to create an integrated player.

Although it is being described as a merger, the deal will actually see Tele2 will absorb Com Hem. According to the financial newswires, the transaction as laid out at the start of the year values Com Hem at around 2.7 billion kronor (€2.6 billion) at current exchange rates.

Tele2 said it expects to complete the takeover in the fourth quarter of this year, subject to the fulfilment of certain conditions and the receipt of all regulatory approvals.

It added that its EGM has elected Lars-Åke Norling as a new board member, effective immediately, and approved the transfer of current Com Hem directors Andrew Barron and Eva Lindqvist to the new Tele2 board once the transaction has taken place.

The naming of the new directors comes a month after Tele2 shared details of the new leadership team that will take control of the merged entity.

Mikael Larsson, Com Hem’s financial chief, will serve as group CFO, while self-employed HR advisor Karin Svensson will become the telco’s chief people and change officer. Samuel Skott and Stefan Backman, already Tele2 executives, will take on the roles of EVP for consumer in Sweden and group general counsel respectively, Tele2 said.

They will all report to Anders Nilsson, current chief exec of Com Hem and CEO-elect of the Tele2 group, who replaces Allison Kirkby.