Deutsche Telekom and Tele2 Sell T-Mobile NL for EUR 5.10 Billion; Maintain FVEs for First Two Firms

No-moat Deutsche Telekom (75%) and narrow-moat Tele2 (25%), who jointly own T-Mobile Netherlands, or T-Mobile NL, have agreed to sell the entity to private equity firm Apax Partners for EUR 5.10 billion. Although the transaction price is higher than what we would have anticipated, it does not have a material impact on our valuations. Our forecasts were already considering the value of T-Mobile NL and the business as small relative to the size of Deutsche Telekom and Tele2; hence we are maintaining our fair value estimates for the latter two companies.