Eltel completes divestment of rail operations in Sweden
The divestment of Eltel’s Swedish rail operations to Strukton Rail AB, announced on 12 March 2018, has now been completed.
The final transaction, comprising build and maintenance contracts with key customers, employees and operational equipment used for delivering the relevant services, has a negative EBITA and negative cash flow effect estimated to approximately EUR 6.5 million.
Eltel will as part of the divestment enter into a subcontractor agreement with Strukton Rail AB for the completion of certain contracts relating to the rail business, expected to be completed during 2019.
In February 2017, Eltel decided that its strategic focus will be on the Group’s core businesses in Power and Communication in the Nordics, Poland and Germany. In January 2018, Eltel completed the sale of its Finnish rail business operations to Winco Oy and its Danish rail business operations to Strukton Rail A/S. The divestment process of Eltel’s rail operations in Norway is still ongoing.
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Eltel is a leading Northern European provider of technical services for critical infrastructure networks – Infranets – in the segments of Power, Communication and Other, with operations throughout the Nordics, Poland and Germany. Eltel provides a broad and integrated range of services, spanning from maintenance and upgrade services to project deliveries. Eltel has a diverse contract portfolio and a growing customer base of large network owners. In 2017, Eltel’s net sales amounted to EUR 1.3 billion. The current number of employees is approximately 8,000. Since 2015, Eltel AB is listed on Nasdaq Stockholm.