Eesti Energia subsidiary sold to Tele2

TALLINN - Estonian state-owned energy giant Eesti Energia sells its telecommunications subsidiary Televork AS to Tele2 for 25 million euros, LETA/National Broadcasting reports.

Eesti Energiamanager Sandor Liive said, explaining the decision, that in order to stay competitive in the telecommunications network business, major investments have to be made that the company cannot do at the moment.

Tele2 Estonia manager Mindaugas Ubartas said that the transaction enables the company to use a pan-Estonian telecommunications network that runs on electricity trunk lines, the services of which were bought so far.

Televork offers mobile internet service Kou, which has 20,000 clients and manages 1,600 km pan-Estonian fibre-optic extra fast communications trunk network.

Tele2 will start offering Kou internet service from July 1.

Televork had 14.2 million euros of turnover and 3.1 million euros of net profit in 2010.

The transaction will come in force after the approval of the Competition Board.