Eltel has signed an agreement to sell its business operations in Estonia to Estonian Tecnolines, a company which operates in the Estonian networks design, construction and maintenance sector. Eltel’s Estonian unit comprises power, telecommunication and gas infranet services and currently employs approximately 300 people. In 2016, these operations generated net sales of EUR 26.3 million with low profitability. The closing of this transaction is subject to approval by the Estonian Competition Authorities and is expected to occur by the end of the year.
The transaction price, subject to changes in net working capital until closing, is estimated to amount to roughly EUR 3 million with expected cash flow impact of EUR 2.5 million in the fourth quarter of 2017.
In July, Eltel sold its Latvian operations in a management buy-out. More information on this transaction can be found here.
Eltel is a leading Northern European provider of technical services for critical infrastructure networks – Infranets – in the segments of power, communication, etc. The company provides a broad and integrated range of services, spanning from maintenance and upgrade services to project deliveries.
The client was advised in the share sale process by partner Toomas Prangli, counsel Paul Künnap and associate Mirjam Vichmann.