Eltel completes sale of Danish rail operations
Eltel has today completed the sale of its rail operations in Denmark to Strukton Rail A/S.
The final transaction, comprising the maintenance contract with Sund & Bælt A/S, 26 employees and operational equipment used for delivering the relevant maintenance services, will have a negative EBITA effect estimated to DKK 3.4 million in the fourth quarter of 2017 and a negative cash flow effect of DKK 18 million, expected to occur in the first quarter 2018.
In February 2017, Eltel decided that its strategic focus will be on the Group’s core businesses in Power and Communication with the geographical markets being in the Nordics, Poland and Germany. Eltel’s rail operations were classified as non-core operations to be divested.
The divestment process of Eltel’s rail operations in Finland, Sweden and 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 2016, Eltel net sales amounted to EUR 1.4 billion. The current number of employees is approximately 8,400. Since 2015, Eltel AB is listed on Nasdaq Stockholm.