Taking a 350 million Euro hit in terms of capital loss, and writing off goodwill in the process sounds like commercial disaster, but Sweden’s Tele2 telecoms groups says it is well pleased with the sale of its French operations to Vivendi-owned SFR. SFR is paying around 350 million euros cash for Tele2 France, which comes debt-free. The market also liked the result, as the price was 10 percent more than expected.
Tele2 is strong in Europe, but has been struggling in the ultra-competitive French environment, part of the southern european market where there is a crowd of rivals. Tele2’s shares rose on the news of the deal by nearly two percent, outperforming the rest of the Stockholm market. The sale is subject to confirmation by the French Competition authority.