Deutsche Telekom AG (DTAG) and the Swedish network operator Tele2 are separating from their joint Dutch subsidiary T-Mobile Netherlands. The company is the mobile phone market leader in the Netherlands. The new owners will be private equity funds managed by Apax Partners and Warburg Pincus. In the sale, T-Mobile NL is valued at 5.1 billion euros.
This also includes the repayment of a loan that Deutsche Telekom had granted its Dutch subsidiary. Telekom expects to generate around 3.8 billion euros net from the sale. Tele 2 will receive around 860 million euros for its quarter.
Of which should Tele2 shareholders through a special dividend benefit. First of all, the parties involved still have to obtain the usual competition law approvals and bring negotiations with the Dutch employee representatives to a positive conclusion.
Without radio towers
The sales package does not include the cell phone towers from which T-Mobile NL transmits. The group sold this to Cellnex Telecom at the beginning of the year for a transaction value of around EUR 700 million. Since then, the network operator has had to rent this special property back.
T-Mobile NL entered the fixed network market in 2016 through the takeover of the fixed network operator Thuis. As of June 30, T-Mobile NL was serving 6.853 million mobile customers, 695 million broadband connections and around 12,000 other fixed-line customers.
Since 2017, T-Mobile NL has increased its mobile communications market share based on the number of mobile communications customers from 25 percent to 42 percent in 2020. However, this growth was not only organic: T-Mobile and Tele2 in the Netherlands merged at the end of 2018. Since then, the Swedish Tele2 parent company has held 25 percent of T-Mobile NL. In addition, T-Mobile NL has swallowed the virtual mobile network operator (MVNO) Simpel.
The group has already planned the income from the sale: Deutsche Telekom is expanding its stake in its US subsidiary. The aim is to hold the majority in T-Mobile US again.