Eltel has signed an agreement to divest its German High Voltage business to ENACO, a German service provider in the energy sector. The transaction is expected to close during Q2, 2021.
Eltel classified its German High Voltage business as assets held for sale at the end of 2020 and the revaluation had EUR -5.7 million impact on Group EBIT in Q4 2020. The transaction is estimated to have negative cash flow effect of EUR 3.8 million.
Eltel will as part of the divestment engage ENACO as a subcontractor for the completion of certain projects, which are expected to be completed during 2021 and 2022. The divestment is subject to customary approvals.
-We are satisfied to find a new strategic owner in ENACO who can continue to develop the business. The transaction creates value for us and our shareholders by strengthening our Nordic focus, says Casimir Lindholm, President and CEO of Eltel.
The divestment is a part of Eltel's strategy to more clearly focus on developing the business in the Nordic countries, where the company has a leading market position, high level of expertise, and in which the business model is repetitive and primarily targeted towards build, service and maintenance.
In 2020, Eltel's German High Voltage business had about 75 employees and net sales of about EUR 10 million.
For further information:
Elin Otter, Director, Communications and Investor Relations
Tel: +46 72 595 4692, email@example.com
Eltel is a leading Nordic field service provider for communication and power networks. We deliver a comprehensive range of solutions - from maintenance and upgrade services to project delivery. This includes design, planning, building, installing and securing the operation of networks for a more sustainable and connected world today and for future generations. In 2020, Eltel had annual sales of about EUR 938 million. The total number of employees currently stands at around 5,400. Eltel AB is listed on Nasdaq Stockholm.
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