Eesti Energia sells Televõrgu to Tele2

On 16 January 2012, Eesti Energia and Tele2 Eesti entered into an agreement for sale of Televõrgu, a subsidiary of Eesti Energia, for EUR 25 million. Televõrgu, a leading Estonian telecommunications company, operates a nationwide fibre-optic telecommunications network and provides the Kõu wireless internet service.

"Televõrgu is a success story born from a smart business idea. In 2001, when we were equipping the high-voltage network with a lightning protection cable, we decided to simultaneously instal a fibre-optic cable. With this, a new alternative trunking communications network was created in Estonia and the former communications department of Eesti Energia became a successful business," says Sandor Liive, chairman of the Eesti Energia management board . "Later, we were the first in Estonia to offer a nationwide mobile internet service with unlimited data capacity at a fixed monthly charge," Liive adds.

"To remain competitive, Televõrgu needs further development. This, in turn, requires substantial investment. Considering the volumes of investment and priorities of Eesti Energia for the coming years, we had to acknowledge that we were unable to invest enough, or fast enough in the telecommunications network," Liive explains. "Tele2 Eesti has long-term successful experience in the field as well as the will and opportunities to take the Televõrgu business to a new level."

In the Televõrgu sale transaction, valued at EUR 25 million and now pending approval of the Estonian Competition Authority, Eesti Energia was advised by SEB Enskilda and law firm SORAINEN.

SORAINEN advised on all stages of pre-divestment, assisting in negotiations, completing legal due diligence review, preparing transaction documents and helping negotiate signing of transaction to completion.

The SORAINEN team, led by partner Toomas Prangli, included senior associate Paul Künnap and associate Mihkel Miidla.

Televõrgu was founded in 2001. Until 2025, Televõrgu possesses 1600 kilometres of fibre-optic telecommunications network and 135 base stations which enable rapid transmission of huge volumes of data and voice communication throughout Estonia. Through the Baltic Optical Network alliance, Televõrgu is also a leading data communication operator in the Baltic States. In 2007, Televõrgu was the first in Estonia to offer mobile internet service called Kõu which now has about 20,000 users. Televõrgu's turnover in 2010 amounted to EUR 14.2 million and net profit to EUR 3.1 million.

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