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Industri Kapital sells Eltel Networks to 3i12/06/2007. Source: AltAssets. 
 Telefos, majority owned by Industri Kapital, has agreed to sell Espoo, Finland-headquartered Eltel Networks to 3i. Minority shareholder TeliaSonera has also agreed to sell its shares. The value of the transaction was not disclosed.
Industri Kapital 2000 Fund acquired Eltel Networks as part of its acquisition of Telefos in December 2004. In January 2005 Eltel Networks was combined with Swedia Networks, which Industri Kapital acquired in 2001 as part of a group of eight companies within the Telia Enterprises division. The merger of Swedia Networks focusing on servicing telecommunication networks in Sweden, with Eltel Networks focusing on servicing electricity networks in Finland, created a major service provider in Northern Europe.
Sources told AltAssets that Industri Kapital is to make a 2.5 times return on its combined investments in Swedia Networks and Eltel Networks.
The other companies within the Telia Enterprises division have already been successfully divested.
Eltel Networks is a Northern European specialist in the installation and maintenance of infrastructure for electricity and telecommunications. Eltel Networks employs 8,200 professionals across Europe, primarily in the Nordics, the Baltics and Poland. For the year ending December 2006, the company achieved an EBITA of €34m on sales of €756m.
Industri Kapital is a European private equity firm with Nordic roots, managing close to €4bn in fund commitments. Industri Kapital's current portfolio encompasses 23 companies with a total turnover close to €9.3bn. Current investments in Finland include Moventas, Tradeka, Dynea, and CPS Color.
3i invests in both buy-out, growth capital, venture capital, infrastructure and quoted private equity transactions. The firm is active in Europe, the US and Asia. 3i announced earlier this month that it had acquired 25 per cent of the shares of Finnish mobile operator Finnet (to be renamed DNA) from 18 local telecom operators in the Finnet Group for €140m.
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