May 30, 2016 / 8:50 AM / 3 years ago

Finland's Elisa to buy Anvia's consumer business, drops full takeover plan

HELSINKI, May 30 (Reuters) - Finland’s largest telecoms operator Elisa said on Monday it has agreed to buy regional operator Anvia’s consumer business for 107 million euros ($119 million) in a compromise deal that ends a year-long ownership battle.

Elisa last year launched a public tender offer for all of Anvia, which operates in western Finland, but Anvia’s local owners were reluctant to sell and then considered an IPO.

Elisa will buy Anvia’s broadband, fixed-line phone and TV business. It will pay the transaction price with all of its Anvia shares — close to 40 percent stake — and about 30 million euros in cash.

The businesses had sales of about 82 million euros last year and accounted for more than half of Anvia’s total revenue. Elisa had revenue of 1.6 billion euros.

“This is a very good solution, we are buying businesses which are core to Elisa, and all the disagreements between the companies have now been cleared up,” Elisa Chief Financial Officer Jari Kinnunen said. (Reporting by Jussi Rosendahl and Tuomas Forsell; editing by Jason Neely)

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