NetCom AB, the Swedish telecommunications group listed on both the Stockholm and Nasdaq stock exchanges, announced this week a US$3.9 billion offer for Societe Europeenne de Communication SA (SEC), the Luxembourg-based group encompassing fixed line, mobile and Internet telephony - a deal which would create a pan-European telecommunications company operating in 18 countries.
SEC is also a Nasdaq-listed company and the proposed merger would result in NetCom owning around 71.7 per cent of the enlarged group and SEC 28.3 per cent. Anders Bjorkman, President and Chief Executive of SEC, said of the proposed stock-swap deal: 'The merger of NetCom AB and SEC will bring together two businesses with similar cultures and a focus on price and customer service. It is our belief that the merger will speed both groups’ ambitions to become the leading alternative pan-European provider of telecommunications services.'
Lars-Johan Jarnheimer, President and Chief Executive of NetCom AB, commented: 'We believe that our offer is in the interests of both SEC and NetCom AB’s shareholders and customers. SEC’s businesses will broaden NetCom AB’s European footprint and service offering and establishes Tele2 as a pan-European brand.'
NetCom already holds a 17.8 per cent stake in SEC and its takeover will let the companies consolidate their jointly owned Tele2 brand, an independent telecom operator, and focus on Europe-wide growth. SEC already covers the Netherlands, Germany, Switzerland, Austria, France, Italy, Luxembourg, Liechtenstein, Ireland, Spain and Belgium. The merged company, which would have around nine million customers, will be traded both on the Stockholm stock exchange and Nasdaq. The deal is subject to approval by NetCom shareholders at an extraordinary general meeting on August 10.
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