Sanoma Entertainment has agreed to sell the Finnish cableco Welho to the DNA telecommunications group. As part of the transaction, DNA will launch a share issue that will enable Sanoma to become the second largest shareholder in DNA with a holding of 21%. The transaction must first receive approval from the competition authorities and the Council of State.
The deal gives Welho a pricetag of €200 million, giving Sanoma a capital gain of €185 million.
In a fragmented market Welho is Finland’s largest cable operator with sales of €67 million in 2009 and providing employment to 205 people.
“Welho has invested significantly in developing its network and services, and is now in very good shape. Together, Welho and DNA form a strong national telecommunication player that has the muscle for further development,” said Sanoma Entertainment’s President Anu Nissinen.
Following the deal, the Sanoma Entertainment division will comprise Nelonen Media’s TV and radio business as well as Sanoma Games’ online casual gaming services.