Eesti Energia sells its telecom business

Eesti Energia has signed an agreement with Tele 2 Eesti AS for the sale of Televõrgu AS, its 100% subsidiary. The enterprise value of Televõrgu AS, one of the leading Estonian telecommunication services provider, is 25 million euros on debt and cash free basis. The transaction will be closed after approval from Competition Board.

Prior to establishment of Televõrgu AS as a separate legal entity in 2001, the company mainly rendered communication services to Eesti Energia. Today, Televõrgu AS is one of the leading, Estonian telecommunication company providing data transmission services to local and international carriers and wireless internet access service Kõu to approximately 20,000 retail customers.

The sale of Televõrgu AS supports the core strategy of Eesti Energia to focus on the full electricity market liberalisation in 2013. Respectively, Televõrgu AS will benefit from being part of the large international group with focus on broad range of telecommunication services.

In 2010, the revenue and net profit of Televõrgu AS totaled approximately EUR 14.2 million and EUR 3.1 million, respectively.