Telia Company divests its holding in Yoigo to MÁSMÓVIL

Telia Company has agreed to sell its 76.6 percent holding in the Spanish
operator Yoigo to MÁSMÓVIL, a Spanish telecommunications operator. The
transaction price is based on an enterprise value of EUR 625 million for 100
percent of Yoigo. The deal is subject to approval from the Spanish competition
authorities. The transaction is expected to close during the third quarter of
2016.
“The divestment of Yoigo is an important milestone in our ambition to increase
focus on our operations in the Nordics and Baltics. I am happy that we have an
agreement with MÁSMÓVIL, who will be able to leverage a small but great and
agile team into a combined unit, creating an even stronger challenger in the
Spanish market,” says Johan Dennelind, Telia Company’s President and CEO.

The transaction price is based on an enterprise value for Yoigo of EUR 625
million, of which Telia Company’s 76.6 percent share corresponds to EUR 479
million. The agreed price implies an EV/EBITDA multiple of approximately 8.1x
based on Yoigo’s 2015 results. The divestment is estimated to generate a capital
gain of more than SEK 4 billion. Following debt adjustments, the transaction is
expected to reduce net debt for Telia Company by approximately SEK 6 billion.
Capital gain and impact on net debt are subject to timing of closing of the
transaction and FX movements.

Yoigo has approximately 3.3 million subscriptions and a market share of 7
percent in Spain. Sales in 2015 were approximately SEK 8 billion. Telia
Company’s ownership in Yoigo is 76.6 percent. As part of the transaction, the
minority owners ACS (17.0%), FCC (3.4%) and Abengoa (3.0%) will continue to have
an exposure to the combined entity. Telia Company, and the minority
shareholders, are entitled to a break-up fee of EUR 30 million if the
transaction would not be completed.

About MÁSMÓVIL
The MÁSMÓVIL Group is an integrated telecommunications operator providing
universal telecommunications services (fixed, mobile, ADSL, fiber, datacenter,
value added services) to multiple market segments (residential, business and
operators). Through a number of acquisitions, MÁSMÓVIL has become one of the
leading mobile operators in Spain. MÁSMÓVIL today serves close to 1 million
residential customers (mobile and VoIP services), 26,000 enterprises and is
interconnected to more than 150 operators around the world. MÁSMÓVIL is publicly
listed in Spain since March 2012.

Telia Company AB discloses the information provided herein pursuant to the
Swedish Securities Markets Act and/or the Swedish Financial Instrument Trading
Act. The information was submitted for publication at 09.00 on 21 June, 2016.

For more information, please contact our press office +46 771 77 58 30, visit
our Newsroom (http://www.teliacompany.com/en/newsroom/) or follow us on Twitter
@Teliacompany.

Forward-Looking Statements
Statements made in the press release relating to future status or circumstances,
including future performance and other trend projections are forward-looking
statements. By their nature, forward-looking statements involve risk and
uncertainty because they relate to events and depend on circumstances that will
occur in the future. There can be no assurance that actual results will not
differ materially from those expressed or implied by these forward-looking
statements due to many factors, many of which are outside the control of Telia
Company.

We’re Telia Company, the New Generation Telco. Our 21,000 talented colleagues
serve millions of customers every day in one of the world’s most connected
regions. With a strong connectivity base, we’re the hub in the digital
ecosystem, empowering people, companies and societies to stay in touch with
everything that matters 24/7/365 - on their terms. Headquartered in Stockholm,
the heart of innovation and technology, we’re set to change the industry and
bring the world even closer for our customers. Read more at
http://www.teliacompany.com/.