3i acquires 25% of Finnish mobile operator DNA for €140 million

3i, world leading private equity and venture capital company, announces that it has acquired 25% of the shares of Finnet Oy (to be renamed DNA Oy), a leading Finnish mobile operator for €140 million (3i’s stake will become 13% after the anticipated merger of five local operators and DNA).

The shares have been acquired from 18 local telecom operators in the Finnet Group.

DNA is one of the largest telecom operators in Finland, with 1,070,000 mobile subscribers.  The company’s turnover was €365 million in 2006.  DNA’s mobile operator arm has seen significant growth in recent years and, following the anticipated merger, the fixed line division will control the access network to approx. 25% of Finnish households.

As a well-run and rapidly growing company, DNA is an attractive investment for 3i.  As a partner, 3i will support DNA’s transition into a national, full-service telecommunications group, which will offer mobile, fixed line, broadband and cable TV services following the merger.

”As a leading private equity investor, we can help companies solve complex ownership situations like this one,” says 3i Investment Director Berndt Schalin.  “We are looking forward to actively supporting DNA in its transition to a fully commercial, integrated telecom operator and in its desire to prepare for the capital markets.”

“The main DNA shareholders will continue as owners in the new merged DNA.  3i, as a new owner, shares our view of developing a new, strong and fast-growing Finnish operator,” said Mr. Risto Siivola, DNA Chairman.  Mr. Jan-Erik Frostdahl, DNA CEO, commented: “Having a united group of owners provides a clear opportunity for DNA to continue its development and enables it to achieve its business targets as well as prepare for the capital markets.”  
 
Following the acquisition by 3i of a minority stake in DNA, there will be no impact on the company’s employees or operations.

Citigroup was the financial adviser to 3i on this transaction.