The Swedish and Finnish telecommunications companies Telia and Sonera plan to merge.
The combination will have combined preliminary pro-forma 2001 revenues of SEK 83 billion or EUR 9.0 billion and approximately 34,000 employees.
The merger will be effected through an exchange to all shareholders of Sonera by Telia. Sonera shareholders will receive 1.51440 Telia shares in exchange for each Sonera share.
Based on the closing prices of the Sonera and Telia shares on March 22, 2002 the Exchange Offer corresponds to a premium of 15.8% for Sonera shareholders. Pro-forma ownership of the new group will be 64% for current Telia shareholders and 36% for current Sonera shareholders, assuming 100% acceptance of the Exchange Offer.
The combined company will have a primary listing on the Stockholm Exchange and will seek secondary listings on the Helsinki Stock Exchange and in the US.
Both the Swedish and Finnish government have agreed to fully support the merger and have signed a shareholder agreement. Subject to market conditions, each shareholder intends to reduce its shareholding in the combined company during the five years following the closing. The two governments have committed not to sell any shares prior to the closing.