United Group acquires Croatian rival Tele2 for $245.7 million

FILE PHOTO: A shop assistant looks on from inside a Tele2 company's sales office in St. Petersburg, March 28, 2013. REUTERS/Alexander Demianchuk

SARAJEVO (Reuters) - Balkan telecoms and media company United Group B.V. on Friday acquired Croatian telecoms operator Tele2 Croatia for 220 million euros ($245.70 million), including debt, expanding its presence in south-eastern Europe.

“Croatia is an attractive and important market for us and we’re pleased to have acquired Tele2 Croatia, which will enable us to diversify the group further, both into EU member countries and by strengthening the telecoms services we provide,” group CEO Victoriya Boklag said in a statement.

Private equity firm BC Partners in March completed the acquisition of a majority stake in United Group from KKR, in one of the biggest private equity deals in the region. United Group, founded in 2000, operates in the six ex-Yugoslav countries.

Reporting by Maja Zuvela. Editing by Jane Merriman