Swedish telecom operator Tele2 said on Thursday it was selling its operations in Luxembourg and Liechtenstein to Belgium's Belgacom for around 2 billion crowns ($333 million).

The company said separately it would book an impairment loss of about 1 billion crowns ($167 million) in the second quarter to cover goodwill writedowns in Germany and Poland.

The sale of Tele2's operations in Luxembourg and Liechtenstein, which had been rumoured earlier this month to be in the pipeline, will result in a capital gain of about 1 billion crowns, the company said in a statement.

"This is another step in their realignment and it (the writedown) may be preparation ahead of an exit in Germany," an analyst who asked not to be identified said.

"Tele2 appears to be moving toward remaining in Russia and Sweden and after that we will have to see what happens. I'm waiting for an exit in Germany and I think we will see one this year."

Tele2 launched a strategic review almost two years ago and has said it will refocus its business on Russia, the Baltics and Sweden.

The business being divested to Belgacom has 238,000 mobile customers and a 39 percent share of the mobile market as well as a fixed line presence.

Belgacom, which last year tried to buy another Luxembourg operator, VOXmobile, but lost out to Belgian rival Mobistar, said it expected to achieve synergies of 25 million euros, given its operations in Belgium and existing residential mobile and IT presence in Luxembourg. 

The deal is subject to relevant approvals of the appropriate antitrust authorities, the companies said.

While making a second-quarter capital gain on the deal with Belgacom, Tele2 said it would also be booking an impairment loss in the quarter of about 700 million crowns for a writedown of goodwill and other assets in Germany, and another around 300 million to cover goodwill writedowns in its Polish business.

"The impairment will have no impact on Tele2's cash flow," the company added.

Tele2 shares opened 0.9 percent lower at 114.5 crowns, in line with an early decline of the Stockholm bourse's blue chip index . Belgacom shares dipped 0.8 percent.

Source:Reuters