DNA Ltd has reached an agreement with Sanoma to purchase Welho business operations. This event will also entail Sanoma becoming the second-largest shareholder in DNA.
In connection with the business transaction, DNA will organise a special share issue ensuring that Sanoma becomes the second-largest shareholder in DNA with 21 per cent holding.

 

This business transaction will combine the resources of two powerful companies: Welho has a tight hold of the fixed-network business in the Helsinki Metropolitan Area, while DNA is one of the major nationwide telecommunications providers, with a 25 per cent market share, as well as the leading fixed-network service provider in the Oulu, Lahti, Turku, Pori and Kuopio regions.

 

- Through this business transaction, DNA will obtain a significant share of the broadband and television business markets in the Helsinki Metropolitan Area, something we have lacked thus far. DNA and Welho will partner to form a comprehensive, natural business entity without significant overlaps, says Riitta Tiuraniemi, President and CEO of DNA Ltd.

 

Supreme customer service

 

The services provided to Welho customers will remain unchanged through this acquisition. 320,000 households are connected to the Welho network, with 163,000 of these subscribing to broadband and pay-TV services.

 

- Welho’s customers can continue using their services just as before. Together, we are able to offer an improved range of services to our customers, Riitta Tiuraniemi states.

 

An international EPSI Rating study published in the autumn of 2009 indicates that DNA’s private and corporate customers are the most satisfied mobile communication customers in Finland. In the same study, Welho earned the top marks in broadband services. Both DNA and Welho have continuously remained at the top in measurements of customer service response times.

 

DNA to become nationwide TV operator

 

Owing to the business transaction, DNA will become Finland’s largest cable TV operator with a 43-per cent market share.

 

- This acquisition realises DNA’s strategy of being Finland’s leading television operator. DNA’s expansion into HDTV services for the terrestrial network in late 2010 will further bolster our position as a nationwide operator in the Finnish television market, Tiuraniemi states.

 

Co-operation generating new business

 

The convergence of media and telecommunications creates the potential for generating entirely new business. Sanoma boasts strong content creation, whereas DNA has a nationwide broadband network and close to 3 million customers. Moreover, the development of various new terminals as well as the proliferation of smart phones and e-readers, coupled with the dropping trend in prices,...