Economy News Shares

Deutsche Telekom and Tele2 sell T-Mobile Netherlands


Deutsche Telekom and Tele2 announced Tuesday that T-Mobile Netherlands will be sold for 5.1 billion euros ($6 billion). The buyer is a consortium of investment funds consisting of Apax Partners and Warburg Pincus.

deutsche telekom
Deutsche Telekom AG is the the largest telecommunications provider in Europe by revenue.

In 2015, Deutsche Telekom owned 75% of T-Mobile Netherlands and 25% of Tele2, while the German giant was considering selling since 2015.

“Deutsche Telekom and Tele2 announce that they have reached an agreement to sell T-Mobile Netherlands Holding to Telekom Holdings IV B.V, an entity jointly controlled by the funds Apax Partners and Warburg Pincus for (…) 5.1 billion euros” ($6 billion) said the German group in a statement.

Deutsche Telekom held 75% of the company and the Swedish group Tele2, 25% of the capital. From this transaction, the group should receive 3.8 billion euros ($4.5 billion).

The sale of this subsidiary has been discussed since at least 2015.

“Apax and Warburg Pincus will support T-Mobile NL and its management team in the next phase of its growth,” the company said in a statement.

T-Mobile Netherlands has experienced strong growth in recent years. Reports noted that its market share has grown from 25% in 2017 to 42% by 2020, making it the “leader” of the Dutch mobile market.

Between June 2020 and June 2021, the Dutch company generated revenues of about €2 billion ($2.38 billion) and an adjusted operating profit (AL Ebitda) of about €582 million ($692 million).

“We are looking forward to this partnership with Apax and Warburg Pincus,” said T-Mobile Netherlands CEO Søren Abildgaard.

Apax Partners and Warburg Pincus have already invested in the telecom business in recent years in Orange Switzerland, Ziggo, Wind Telekom, and Community Fibre in the UK.

Deutsche Telekom said the transaction is still subject to “regulatory approval and consultation with employee representatives”.

For MetaNews.


Jonathan Hobbs

Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

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