NTL to take 25% stake in B2

Bredbandsbolaget (B2), the Swedish telecommunications company specialising in the provision of broadband access and services to the home, today announced that broadband communications company NTL (NASDAQ: NTLI) is to take a 25% stake in the company through a capital increase. The funds raised will be used to continue B2's international expansion.

As part of the agreement, Barclay Knapp, NTL Chief Executive, and John Gregg, NTL Chief Financial Officer, will join B2's board of directors.

The financial terms of the deal were not disclosed.

Jonas Birgersson, B2's Chairman, said: "We are delighted to welcome NTL as a new investor. Their support shows great confidence in B2 and adds to our list of blue chip investors, which already includes Intel, Investor AB and the Carlyle Group."

"Internationally, NTL has a strong entrepreneurial track record. This deal gives B2 a strong partner as we move into new markets. In particular, NTL will give B2 access to a wide range of content and service providers. It will help B2 build a broadband platform and position B2 for aggressive expansion outside its home market to become one of the leading new generation broadband operators in Europe."

Barclay Knapp, Chief Executive of NTL, said: "We have joined forces with B2 in order to develop an important strategic alliance in Scandinavia, Europe's most e-centric region. B2 is implementing one of the most aggressive fibre-to-the-home rollout strategies anywhere in the world, targeting over one million homes by 2001. We have also been impressed by the Brikks system which has been developed by Framfab to provide consumers with the freedom to create their own ‘front end' home portal. We look forward to putting B2's skills and experience to good use in the months and years ahead."

Representing B2's investors, Börje Ekholm, Investor AB Managing Director, said: "We welcome NTL to the B2 board. This will significantly improve the execution capability and international potential of B2."