Offer at SEK 3.25/share In a move that was not too unexpected, Telia made a cash offer of SEK 3.25/share for Bredband2 today, representing a 35% increase on yesterday's close. The acceptance period for the offer is expected to run from 1 September to 17 October.
18x-15x '25e-'26e EV/EBITA The offer values Bredband2 at SEK 3.1bn and 18x–15x '25e–'26e EV/EBITA (vs. the L5Y f12m avg. of ~11x). It should be noted here that 2025e margins are suffering from accelerated investments (through increased marketing campaigns and price discounts), while the margin outlook for 2026e is much more positive. In total, shareholders owning 50.2% of Bredband2's shares have accepted the offer, including Anders Lövgren, Alcur Fonder and Odin Fonder.
Cost synergies on the cards The deal makes perfect sense from a strategic point of view. Similarly to how Bredband2 has been able to reap significant cost synergies through recent M&A, including the acquisitions of A3, Bredbandsson, etc. – we argue that the synergy potential with Telia is immense; Telia targets SEK 0.2bn in run-rate synergies (for context, Bredband2's r12m opex was ~0.3bn). Based on PTS data, the acquisition would increase Telia's market share of Swedish fibre subscribers to ~48%, up from 33.8% (Bredband2: 14.3%). It is especially sensible that consolidation trends are accelerating now that the Swedish fibre market is almost mature.