TALLINN - Elion Enterprises, a fully owned subsidiary of Eesti Telekom, announced that it is selling a 51 percent majority interest in Eltel Networks to Eltel Networks Corporation of Finland, which already owns 49 percent of the shares.
The price of the deal is approximately 3.9 million euros, Eesti Telekom said on Dec. 16. The transfer of shares will take place after approval by the Competition Board.
Eesti Telekom said the sale would enable Elion to focus on its core business of telecommunication and IT solutions.
The estimated capital gain, to be booked in the fourth quarter of 2004, will be approximately 2.6 million euros. The transition cannot be treated as a transaction with related party, as neither the council nor the management board of Elion Enterprises or Eesti Telekom have no other personal interest in the transaction, Eesti Telekom said.
The right to acquire 100 percent of the shares in Eltel was given to Eltel Networks Corporation in May 2003, when the 49 percent minority interest was sold.
Eltel Networks is an electrical and telecommunications solutions provider active in all the three Baltic states. In May this year it estimated its turnover in 2004 to reach 400 million kroons (25.6 million euros).
Eltel Networks Corporation is an infranet company providing services to network owners in northern Europe. Eltel Networks Corporation employs more than 2,300 people, and more than 800 people in its associated companies. Its turnover this year is estimated to reach 310 million euros.