Kinnevik agrees to sell its entire shareholding in Tele2 to an investment vehicle jointly controlled by iliad and NJJ

Kinnevik
Kinnevik AB (publ) (“Kinnevik”) today announced that it has agreed to sell its entire shareholding in Tele2 AB (publ) (“Tele2”) to Freya Investissement, an investment vehicle jointly controlled by the European telecommunications group iliad and its Chairman and founder Xavier Niel through NJJ Holding (“iliad/NJJ”) for a total consideration of SEK 13bn. The shareholding in Tele2 will complement iliad/NJJ’s existing European telecommunications operations across France, Italy, Poland, Switzerland, Monaco, Ireland, Cyprus and Malta. The transaction will be completed in three steps with a first close of SEK 2.9bn. The two remaining steps are subject to iliad/NJJ receiving necessary regulatory clearances and in relation to the third step also to iliad/NJJ reclassifying Tele2 Class A shares to Class B shares to the effect that iliad/NJJ following completion of the transaction will hold less than 30 percent of the voting interest in Tele2.

Kinnevik has agreed to sell its entire shareholding in Tele2 consisting of 20.7 million Class A shares and 116.9 million Class B shares to iliad/NJJ. Proceeds amount to a total of SEK 13bn, corresponding to SEK 93.0 per Tele2 Class B share and SEK 101.0 per Tele2 Class A share, an average blended purchase price of SEK 94.2 per Tele2 share that implies a 13 percent premium in relation to the closing price of the Tele2 Class B share on Nasdaq Stockholm as per 23 February 2024.

The transaction will be completed in three steps:

1.    iliad/NJJ will acquire 31.3 million Class B shares in Tele2. After completion of this first step iliad/NJJ holds 4.5 percent of the economic interest and 3.5 percent of the voting interest in Tele2. Proceeds to Kinnevik in this first step amount to SEK 2.9bn.

2.    iliad/NJJ will acquire 14.2 million Class A shares and 85.5 million Class B shares in Tele2 following foreign direct investment clearances in Sweden, Latvia and Lithuania, which are expected to be received during the second quarter of 2024. After this second step, iliad/NJJ will hold 18.8 percent of the economic interest and 28.8 percent of the voting interest in Tele2. Proceeds to Kinnevik in this second step amount to SEK 9.4bn.

3.    iliad/NJJ will acquire Kinnevik’s remaining 6.5 million Tele2 Class A shares after receipt of necessary regulatory clearances, and subject to reclassifying Tele2 Class A shares into Class B shares to the effect that iliad/NJJ following completion of the transaction will hold less than 30 percent of the voting interest in Tele2. Such clearances and reclassification are expected to be received and completed during the third quarter of 2024. After this third step, iliad/NJJ will hold 19.8 percent of the economic interest and less than 30 percent of the voting interest in Tele2. Proceeds to Kinnevik in this third step amount to SEK 0.7bn.

As a result of the transaction, Kinnevik’s cash position will be significantly strengthened, and Kinnevik’s Board of Directors will undertake a capital structure review in consultation with major shareholders.

Georgi Ganev, CEO of Kinnevik, commented: “Through this transaction, Tele2 gains a new lead shareholder in the combination of iliad and NJJ, with a longstanding track record in the European telecoms sector as an early pioneer in France and as a business builder at scale across multiple European markets. Founded by Jan Stenbeck in the early 1980’s, Tele2’s strong value creation has been instrumental in building the Kinnevik of today, fuelling its historic dividend flow to shareholders as well as Kinnevik’s strategic pivot into a leading European growth investor for which we are proud and grateful.”

Georgi Ganev continued: “After completion of this transaction, Kinnevik will hold a very strong net cash position. We will deploy the capital with patience and focus to bring further clarity to our equity story and value creation to our shareholders. We will continue executing on our priority to concentrate our portfolio towards our most promising and resilient companies, and review our capital structure in consultation with major shareholders.”

Thomas Reynaud, Group CEO of iliad and director of Freya Investissement, commented: “The iliad Group and the Tele2 Group have a lot in common. We both believe in the power of innovation and the importance of an entrepreneurial mindset. Our business sector in Europe is highly demanding. So, we have a great deal of respect for what Tele2’s shareholders, management and teams have achieved, and we’re delighted that Kinnevik has chosen Freya as Tele2’s new reference shareholder. We look forward to contributing to the next chapter of Tele2’s growth story.”
This communication contains certain forward-looking statements concerning our intentions, beliefs or current expectations. Such statements are identified by including terms such as “intent”, or similar expressions. Such statements are subject to a number of important risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements. Factors, including risks and uncertainties, that could cause these differences include, but are not limited to: market growth and volatility and regulatory changes and developments. Any forward-looking statements speak only as of the date hereof. Neither Kinnevik nor Tele2 undertake any obligation to update any forward-looking statements.

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Tigo Colombia To Sell Towers To KKR

KKR

Luxembourg, January 24, 2024 – Millicom (NASDAQ: TIGO) announces today that its subsidiary Tigo Colombia has agreed to sell approximately 1,100 wireless communications towers to affiliates of investment funds managed by KKR, a leading global investment firm. KKR plans to work in partnership with NEXO LatAm, a digital infrastructure platform that supports the implementation of KKR’s infrastructure strategy throughout Latin America.

As part of the transaction, Tigo Colombia and KKR have entered into a long-term agreement whereby KKR will lease wireless communications towers to Tigo Colombia to support its wireless networks. The exact number of towers will be determined once the various closings have taken place, which are subject to customary closing conditions.

Mauricio Ramos, CEO and Chairman of the Board of Millicom, said: “This transaction with KKR, a leading digital infrastructure franchise with deep sector expertise and commitment to the region, is another step towards crystallizing the value of our tower sites across Latin America, simplifying our business, and allowing us to focus on servicing our customers. This transaction enhances our operational and capital efficiency in Colombia, with long-term lease obligations denominated in Colombian pesos, consistent with our objective of increasing our proportion of financing in local currency.”

Waldemar Szlezak, a partner on KKR’s Infrastructure team, said: “KKR seeks to develop the telecommunications industry in Latin America through best-in-class mission-critical assets such as fiber, towers and small cells. This acquisition – along with KKR’s fiber investments in Chile, Colombia and Peru – underscores KKR’s commitment to its digital infrastructure platform in LatAm. This important agreement with Tigo is in line with our strategy of long-term partnerships with leading companies in the region.”

KKR is making the investment through its KKR Global Infrastructure Investors IV fund.

For further information, please contact:

Press:
Sofía Corral, Communications Director
press@millicom.com
KKR: Media@kkr.com
Investors:
Michel Morin, VP Investor Relations
investors@millicom.com

About Millicom

Millicom (NASDAQ U.S.: TIGO, Nasdaq Stockholm: TIGO_SDB) is a leading provider of fixed and mobile telecommunications services in Latin America. Through our TIGO® and Tigo Business® brands, we provide a wide range of digital services and products, including TIGO Money for mobile financial services, TIGO Sports for local entertainment, TIGO ONEtv for pay TV, high-speed data, voice, and business-to-business solutions such as cloud and security. As of September 30, 2023, Millicom, including its Honduras Joint Venture, employed approximately 19,000 people and provided mobile and fiber-cable services through its digital highways to more than 45 million customers, with a fiber-cable footprint over 13 million homes passed. Founded in 1990, Millicom International Cellular S.A. is headquartered in Luxembourg.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.

 

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KKR To Invest $400 Million In Leading Neutral Subsea Telecommunications Cable Services Provider OMS Group

KKR

Transaction builds on KKR’s strong momentum in Southeast Asia digital infrastructure

SINGAPORE–(BUSINESS WIRE)– KKR, a leading global investment firm, and the parent company of OMS Group (or the “Company”), a leading telecom infrastructure company and provider of subsea cable services, today announced the signing of definitive agreements under which KKR will commit $400 million in a tailored solution for OMS Group. This marks KKR’s latest digital infrastructure investment in Southeast Asia, underlining its conviction in the role digitalization plays in the region’s burgeoning internet economy.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20231029552367/en/

Founded in 1988, OMS Group is a neutral provider of integrated solutions for subsea telecommunications cable services, including installation and maintenance projects. The Company maintains a more-than-three-decades track record of providing mission-critical services to clients including major subsea equipment providers, large-scale cloud service providers, and telecom companies, and is internationally accredited for its quality management system.1 Today, OMS Group is one of the largest independent operators in this sector, with a diverse fleet including cable ships and cable barges, as well as cable landing stations serving the global telecommunications market.

KKR’s investment positions OMS Group well to accelerate its growth, including through expanding its fleet size and capabilities and investing in cable landing stations and subsea cable routes to serve global fast-growing cross-border data transmission trends and the demand for comprehensive subsea cable services.

Mr Projesh Banerjea, Director, Infrastructure at KKR, said, “OMS Group has established itself as a market leader with a longstanding track record of success and growth in Southeast Asia. As demand for greater connectivity across the region continues to grow, we are delighted to work closely with Datuk Lim, Mr Ronnie Lim, and the highly rated OMS Group team to meet this critical need. Our tailored solution for OMS Group also creates strong adjacencies with KKR’s recent digital infrastructure investments and builds on long-term secular tailwinds in the region, including increased data consumption, enterprise cloud needs, a focus on digitalization by governments, and a booming digital economy. We look forward to sharing our global network and infrastructure expertise to take OMS Group to its next stage of growth.”

Datuk Soon Foo Lim, OMS Group’s Chairman, said, “OMS Group and KKR share the same vision and appreciation of the critical data infrastructure OMS Group builds and maintain for its clients. We look forward to working with Mr David Luboff, Mr Projesh Banerjea and the world-class KKR team in advancing OMS Group’s growth plans.”

Commenting on KKR’s investment, Mr Ronnie Lim, Group CEO, OMS Group, said, “KKR’s investment in OMS Group underscores the value of OMS Group’s capabilities, which provides immense economic value to communities, corporations, and countries around the world by constructing and maintaining critical subsea data infrastructure. Together with KKR’s strong track record in supporting and investing in data infrastructure assets and its platform-building expertise, OMS Group is in a stronger position to support its clients to build and maintain greater global connectivity.”

KKR is making this investment primarily from its Asia infrastructure strategy. This transaction adds to KKR’s track record of investing in digital infrastructure regionally and globally. Past KKR investments in Southeast Asia digital infrastructure have included the regional data center platform of Singtel, a leading Asian communications technology group headquartered in Singapore, and Pinnacle Towers, a digital infrastructure platform in Asia with a strong focus on the Philippines. Globally, KKR’s investments in digital infrastructure have included CyrusOne, a global leader in the development and operation of sustainable, scalable, high-availability and flexible data center solutions, and Global Technical Realty, a build-to-suit and roll-up acquisition data center platform in Europe.

The transaction is expected to be completed by Q1 of 2024, subject to customary closing conditions. Additional details of the transaction are not disclosed.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.

About Optic Marine Group

OMS Group is a global, neutral and integrated telecommunications infrastructure company with a wide range of services covering subsea telecommunications installation and maintenance, digital infrastructure ownership and digital Infrastructure engineering, procurement, maintenance and construction (EPC) under our Interconnect Managed Services division. Our capabilities in submarine fiber-optic cable systems, include installation and repair of deep and shallow water subsea fiber-optic cable systems, permitting in principle acquisitions, project management, direct shore ends, engineering and subsea surveys. We have a strong track record in constructing and owning cable landing stations and terrestrial dark fiber in Southeast Asia.

1 ISO 9001:2015 as certified by the Joint Accreditation System of Australia and New Zealand (JAS-ANZ)

Wei Jun Ong
KKR Asia Pacific
+65 6922 5813
WeiJun.Ong@kkr.com

Derek Lim
OMS Group
+603 5569 3881 ext 137
dlim@opticmarine.com

Source: KKR

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KKR Provides £75 million Financing Facility to TalkTalk

KKR

NEW YORK & LONDON–(BUSINESS WIRE)– KKR, a leading global investment firm, today announced that funds and accounts managed by its credit business have agreed to provide a £75 million non-recourse financing facility to TalkTalk, a leading value for money connectivity provider in the UK. The facility, which is collateralized by certain accounts receivables originated by TalkTalk and its subsidiaries, replaces a prior £75 million financing facility, which matures in September 2023.

The new facility will give TalkTalk access to additional liquidity for a term of approximately three years.

“We are pleased to use our experience in receivable financing globally to support TalkTalk with capital that will help the company continue to grow and connect consumers and businesses across the United Kingdom,” said Giacomo Picco, a Managing Director at KKR.

Demica served as advisor to TalkTalk and will act as the reporting and calculation agent for the program.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.

About TalkTalk​ Group

TalkTalk is the UK’s leading value for money connectivity provider. It believes that simple, affordable, reliable and fair connectivity should be available to everyone.

From its HQ in Salford, TalkTalk is rolling out the UK’s latest fibre technology, bringing 100% full fibre directly into homes and businesses across Britain.

KKR Americas:
Julia Kosygina
+1 212-750-8300
Media@kkr.com

KKR EMEA:
Annabel Arthur
+44 20 7839 9800
kkrpr-uk@kkr.com

Source: KKR

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Bridgepoint acquires Ports Group, a tech-enabled provider of IP management and brand protection solutions

Bridgepoint
  • Ports Group serves long-standing customer relationships built on a reputation for high-quality service and an attractive full-service offering.
  • The company has delivered impressive financial performance, achieving 27% revenue growth since 2018.
  • Bridgepoint will support Ports Group in its next phase of growth, with a focus on international expansion, continued service and product expansion, as well as leveraging M&A opportunities.

 

Bridgepoint has today announced that Bridgepoint Development Capital IV (“BDC” IV), a fund focused on investing in mid-market growth businesses, has agreed to make a majority investment in Ports Group, a leading provider of IP management and brand protection, headquartered in Sweden.

As part of the transaction, Priveq, a Swedish private equity firm, will sell its stake in Ports Group, where management and key employees within the group will reinvest alongside Bridgepoint. Financial terms of the transaction were not disclosed.

Ports Group operates a ‘one-stop-shop’, tech-enabled brand protection platform, delivering vital IP solutions across domain management, trademark management and web security. Their client base spans across SMEs to major enterprises.

Bridgepoint estimates that the global Domain and IP protection market is valued at some €6bn, with an annual growth rate of 6%. This growth is driven by increasing awareness of the value of IP assets and as the market shifts from traditional legal services to tech-enabled solutions.

Ports Group is well-positioned to capitalise on this large and growing market. On the back of a strong technology platform, full-service offering, loyal customer base and strong track record of financial performance, the company is expected to continue to deliver long-term revenue growth and set the standard with industry-leading offerings and service delivery.

The partnership builds on Bridgepoint’s growing track record and expertise within tech-enabled services, with other recent investments including LanguageWire, a leading language service provider and Achilles, a supply chain risk management provider.

Magdalena Bonde, CEO at Ports Group said:

“We are excited to have Bridgepoint on board as our new majority shareholder. We are confident that they will be a strong partner for Ports Group as we embark on our ambitious growth and development journey going forward. In a short period of time, Ports Group has established a European footprint, offering strong capabilities to serve clients on an international stage. We are pleased to have attracted Bridgepoint, who believes in our unique model, our strategic direction and our team.”

Johan Dahlfors, Partner and Head of the Nordics at BDC said:

“We are thrilled to be partnering with Ports Group, a distinguished leader in IP management and brand protection in the Nordic region with a growing footprint across Europe. Their broad service offering, tech-driven approach and platform addresses an underserved demand in the market. This means they are well-positioned which for long-term growth and potential consolidation opportunities in a fragmented market. With an ambitious vision for expansion across products and geographies and a strong international team, Ports Group is poised to reshape the landscape for digital brand protection and further its reputation as a leader.”

The transaction closed on 30 August 2023. It marks the twelfth platform investment by BDC IV and its second in the Nordics.

Ports Group was advised by EY Corporate Finance and Setterwalls Advokatbyrå.

Bridgepoint was advised by Lincoln International (Financial Adviser), Vinge (Legal Adviser), Alvarez & Marsal (Financial, Tax Due Diligence and Tax Structuring), EY-Parthenon (Commercial and Technology Due Diligence), Anthesis Group (ESG Due Diligence) and Marsh (Insurance Due Diligence).

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DIF’s portfolio company ruhrfibre signs EUR 120m senior debt financing

DIF

DIF Capital Partners (via its DIF CIF III fund) is pleased to announce that its portfolio company ruhrfibre has closed on a senior debt financing in support of the buildout of a large-scale fibre network in Essen (Germany), targeting around 150,000 households.

DIF announced its investment in ruhrfibre in November 2022, alongside project developer metrofibre and the City of Essen. The project is a game changer to the city in the industrial Ruhr-area in terms of its economic advancement and will accelerate Essen’s development into a smart city.

The financing package comprises senior loans totalling EUR 120m that are provided by a club of senior lenders comprising ING, Kommunalkredit Austria and SEB. There is a further uncommitted accordion facility of EUR 40m to expand the financing. The facilities are structured as a green loan with a dedicated green use of proceed for the financing of climate friendly broadband technology, and as such underpin DIF’s strong commitment to promote sustainable infrastructure.

The successful financing provides further momentum to ruhrfibre’s significant progress in bringing fibre to Essen: In June, ruhrfibre started the construction work in the first two roll-out areas in Essen. “With full financing, the project is now significantly picking up speed”, says Christopher Rautenberg, Managing Director at metrofibre and ruhrfibre. “New roll-out areas will follow in the next few months to meet our goal of connecting 150,000 households, businesses, and public institutions to the fiber-optic network.”  DIF and ruhrfibre were advised by ING, Hogan Lovells, Arthur D. Little and Riskbridge. The lenders were advised by White & Case.

About DIF Capital Partners

DIF Capital Partners is an independent infrastructure fund manager, with ca. EUR 17 billion of AUM. DIF was founded in 2005 and has built a leading position in managing mid-market investments, primarily in Europe, North America and Australia.

DIF follows two strategies: its traditional DIF funds invest in lower risk mid-sized infrastructure projects and companies in the energy transition (incl. renewables) and utilities sector, as well as PPPs and concessions. The firm’s CIF funds invest in small to mid-sized companies that will thrive in the new economy. These companies are typically active in the digital, energy transition and sustainable transportation sector.

With a team of over 225 professionals in 11 offices, DIF Capital Partners offers a unique market approach combining global presence with the benefits of strong local networks and investment capabilities. DIF is located in Amsterdam (Schiphol), Frankfurt, Helsinki, London, Luxembourg, Madrid, New York, Paris, Santiago, Sydney and Toronto.

For more information, please visit www.dif.eu

Contact DIF Capital Partners: press@dif.eu

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Wireless Logic acquires Webbing

Montagu

Wireless Logic, the leading global IoT connectivity provider has acquired Webbing, a global Mobile Virtual Network Operator (MVNO) providing connectivity for Enterprise Mobility and IoT applications.

Founded in 2010, Webbing provides a leading-edge connectivity service for global customers across sectors including Enterprise Mobility, Automotive and Logistics. It offers a global carrier network that delivers best in class coverage, policy control and enforcement, including compliance with any permanent roaming restrictions, as well as security and other features, all through a single global SIM.

Webbing are market leaders in eSIM technology and have pioneered the shift towards the new GSMA eSIM standards for IoT (SGP.32). Its WebbingCTRL solution leverages SM-DP+ provisioning and enables remote, automatic profile swaps without user intervention. Its fallback module is fully automatic with no MNO actions required ensuring continuous connectivity– a common challenge facing IoT deployments. It also provides centralised management of eSIMs and profiles, simplifying IoT connectivity, reducing costs, and improving time to market. This allows enterprises to leverage connected devices while maintaining full control of their connectivity deployments.

“Webbing exhibited remarkable foresight by recognising the constraints of existing eSIM standards for IoT devices and anticipating enterprise demand for efficient eSIM provisioning solutions,” said Oliver Tucker, CEO of Wireless Logic. “As well as complementing the market segments that Wireless Logic addresses, this acquisition will expand our technology capabilities and offering, particularly as the new GSMA IoT eSIM standard gains prominence. Furthermore, Webbing’s local presence and partnerships in regions including the US and Asia, will further enhance our ability to deliver a future proof, flexible and fully redundant global connectivity through a single SIM.”

As well as complementing the market segments that Wireless Logic addresses, this acquisition will expand our technology capabilities and offering, particularly as the new GSMA IoT eSIM standard gains prominence.

Oliver Tucker, CEO, Wireless Logic

“We are excited for the path ahead,” said Noam Lando, Co-Founder and CEO at Webbing. “Since our foundation, we have been committed to meeting the needs of global IoT by developing progressive SIM technology, powerful management platforms and a robust network. We believe that device owners deserve tailor-made, rock-solid, future-ready connectivity within their control. With the support of Wireless Logic, we are excited to build on this vision, delivering enhanced benefits to our customers and teams worldwide.”

We are excited for the path ahead. With the support of Wireless Logic, we are excited to build on our vision, delivering enhanced benefits to our customers and teams worldwide.

Noam Lando, Co-Founder and CEO, Webbing

This agreement follows Wireless Logic’s recent acquisitions of IoThink Solutions, Mobius Networks, Jola and Blue Wireless, continuing its strategy of global expansion, service offering enhancement and new routes to market.

Wireless Logic and Montagu were advised by Rothschild & Co. on this transaction. Webbing was advised by Bank of America.

 

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KPN ventures invests in global esim marketplace platform airalo

Kpn Ventures

KPN Ventures announced today that it has joined the series B financing round in Airalo, the world’s first and largest eSIM store. Airalo and KPN Wholesale are working together on a partnership to boost growth.

Airalo is a global eSIM marketplace platform for travelers to purchase eSIMs, providing connectivity at local prices. Customers can download an affordable data plan directly on their phone, without the hassle of exchanging a physical SIM card, resulting in a contact-free and seamless experience. Airalo solves the pain of high roaming bills and security issues of unsafe public WiFi networks by providing access to connectivity in over 200 countries and regions. Airalo is on a mission to provide global data connectivity for all travelers around the world with its millions of users already and global team spanning over 44 countries, Airalo is well on track.

“Airalo’s impressive eSIM marketplace platform makes them destined to further grow their global number one positioning in connectivity for travelers” says Michel van Wissen, EVP Wholesale, “We’re very excited to work together and support them in their international successes.”

Airalo receives $60M of funding in the Series B financing round. The round is led by e& Capital with participations from Antler Elevate, Rakuten Capital, Singtel Innov8, Peak XV (formerly known as Sequoia Capital India and SEA), T Capital, Orange Ventures, Telefónica Ventures, Go Ventures, I2BF Global Ventures and others.

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CapMan Infra’s portfolio company Valokuitunen Oy successfully closes a €400 million refinancing

Capman

CapMan Infra’s portfolio company Valokuitunen Oy successfully closes a €400 million refinancing

Valokuitunen Oy, a joint venture between CapMan Infra and Telia Company, is the largest fibre-to-the-home (FTTH) company in Finland. Valokuitunen Oy deploys fibre networks to residential neighbourhoods on a national scale. The funding sets the company up for the next phase of expansion in the Finnish market.

CapMan Infra has secured a financing package close to €400 million for Valokuitunen Oy, its portfolio company, of which €285 million is committed at closing. The debt package has been provided by a group of banks consisting of KfW, SEB, Société Générale, Crédit Industriel et Commercial, and NIBC. Valokuitunen Oy was advised on the financing by Rothschild & Co, Latham & Watkins, and Avance Attorneys.

Established in 2020 as a joint venture between CapMan Infra and Telia Company, Valokuitunen Oy’s open fibre network gives customers the opportunity to choose the network services and service providers they prefer. With a network that currently reaches over 120,000 households, Valokuitunen intends to expand its footprint to around 300,000 households by 2026.

“The funding gives Valokuitunen, the largest player in Finland in its sector, the opportunity to deliver on the next phase of growth of its fibre-to-the-home network across the country, which is largely built on already sold contracts. Finland has an ambitious national digital road map in which fast network connections for households and businesses are seen as key for advancing the digital transformation, and CapMan Infra and Valokuitunen Oy are involved in making this happen,” comments Harri Halonen, Partner at CapMan Infra.

“The volume of data traffic is growing exponentially. Households in Finland need better infrastructure to meet current and future demand. Optical fibre will answer this need as a long-lasting solution for decades. This financing will secure the build-out of our large portfolio of already made investment decisions and provides a basis for future expansion of the network. Our solution not only provides our customers with an excellent infrastructure, but also the possibility of selecting an internet service provider from various options now and in the future,” says Juho Ansio, CFO of Valokuitunen Oy.

For more information, please contact:

Harri Halonen, Partner, CapMan Infra, tel. +46 768 71 0062

Juho Ansio, CFO, Valokuitunen Oy, tel. +358 40 557 7223

About CapMan Infra

CapMan Infra invests in energy, transportation and digital infrastructure assets generating predictable cash flows. CapMan Infra is a dedicated and active owner seeking to drive operational improvements and offers tailored solutions to local infrastructure asset owners and partners in the Nordic countries. The team of twelve infrastructure professionals is based in Helsinki and Stockholm. CapMan Infra has two funds, one established in 2018 and one in 2022. In addition to the fund, the team also manages two investment mandates.

CapMan Infra is part of CapMan Group, a leading Nordic private asset expert with an active approach to value creation and over €5 billion in assets under management. CapMan’s objective is to provide attractive returns and innovative solutions to investors. We have set greenhouse gas reduction targets under the Science Based Targets initiative in line with the 1.5°C scenario. We have a broad presence in the unlisted market through our local and specialised teams. Our investment strategies cover minority and majority investments in portfolio companies and real estate, and infrastructure assets. We also provide wealth management solutions. Our service business includes procurement services. Altogether, CapMan employs approximately 190 professionals in Helsinki, Jyväskylä, Stockholm, Copenhagen, Oslo, London and Luxembourg. We are listed on Nasdaq Helsinki since 2001. www.capman.com

About Valokuitunen

Valokuitunen is a fast-growing Finnish company building and rolling-out fibre networks to homes and businesses in residential areas nationwide. We provide reliable and sustainable fibre connections, on market terms, connected to Telia’s fibre-optic network (Avoin Kuitu), which allows customers to select services and service providers. Valokuitunen is a joint venture between CapMan Infra (60%) and Telia Company (40%) established in 2020. We employ over 100 professionals and approximately 300 people through partners. In 2023 alone we have invested €100 million in fiber networks in Finland. Learn more at www.valokuitunen.fi.

 

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DIF Capital Partners leads €250 million+ funding round to expand Valoo’s Finnish fibre rollout

DIF

Investment will bring fibre connectivity to 300,000 Finnish households

DIF Capital Partners (“DIF”) is pleased to announce that it is leading a debt and equity funding round worth in excess of €250 million for Valoo (Adola Oy), which will help it expand its optical fibre rollout to underserved regions and municipalities in Finland. DIF’s equity investment is made through its CIF III fund. The funding is a follow-up to the initial investment made by DIF’s CIF I fund which supported the first part of the growth trajectory of the company.

While DIF acts as the lead investor, the funding round is also backed by Tesi (Finnish Industry Investment Ltd) and other investors. Senior debt has been provided by a banking group of SEB, NORD/LB and NIBC.

The funding will allow delivery of long-awaited high-speed fibre connectivity to areas that to date have had to rely mainly on mobile connectivity for internet access. The package will bring fibre to over 300,000 households and secure close to 1,000 jobs within the company and the wider market.

Valoo builds and operates fibre-optic networks across Finland. It does not charge customers for the construction of network connections to their homes, instead basing its business model on long-term customer relationships to provide internet services.

Valoo is set to continue its evolution into Finland’s leading platform for fibre connectivity, thanks to its expanding footprint and a strong national brand. The investment will also help to create the conditions for a future wholesale fibre access market in Finland, strengthening consumer choice. This will allow multiple operators to connect to their consumers through a single infrastructure.

DIF Capital Partners is an independent global infrastructure fund manager and a leading investor in optical fibre rollouts, having funded major projects in Canada, Germany, France, the UK and the USA among others.

“Our follow-up investment in Valoo enables it to connect a much larger number of underserved areas in Finland to fibre broadband infrastructure,” says Willem Jansonius, Partner and Head of CIF Investments at DIF Capital Partners.

“Finnish households have long struggled to access state-of-the-art broadband connectivity, especially outside of major urban areas. That shortfall was highlighted during the lockdowns of the Covid-19 pandemic. This investment will provide a significant improvement to those people’s and communities’ ability to work and participate in the global digital economy.”

“DIF’s investment in Valoo further underscores our position as a major investor in the Finnish market and our continued focus on digital infrastructure across Europe and North America. It’s also a vote of confidence in the successful transformation of Valoo’s business over recent years.”

 

About DIF Capital Partners

DIF Capital Partners is an independent infrastructure fund manager, with ca. EUR 16 billion of AUM. DIF was founded in 2005 and has built a leading position in managing mid-market investments, primarily in Europe, North America and Australia.

DIF follows two strategies: its traditional DIF funds invest in lower risk mid-sized infrastructure projects and companies in the energy transition (incl. renewables) and utilities sector, as well as PPPs and concessions. The firm’s CIF funds invest in small to mid-sized companies that will thrive in the new economy. These companies are typically active in the digital, energy transition and sustainable transportation sector.

With a team of over 225 professionals in 11 offices, DIF Capital Partners offers a unique market approach combining global presence with the benefits of strong local networks and investment capabilities. DIF is located in Amsterdam (Schiphol), Frankfurt, Helsinki, London, Luxembourg, Madrid, New York, Paris, Santiago, Sydney and Toronto.

For more information, please visit www.dif.eu

 

Contact DIF Capital Partners: press@dif.eu

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