Eltel’s rail and road business signs a EUR 10 million three-year maintenance agreement with Sund & Bælt in Denmark

Regulatory News:

Eltel (STO:ELTEL) has signed an agreement with Sund & Bælt Holding A/S regarding maintenance of the rail system on Storebæltsbroen and Öresundsbanen. The contract period starts in April 2016 and runs for a three-year period with an option of extension period of one year. The value of this contract is approximately EUR 10 million.

Sund & Bælt has trusted Eltel with a new frame agreement regarding preventive maintenance and emergency service 24/7 of tracks, signaling and electrification on the Storebælt bridge and tunnel system and on the rail system between Copenhagen’s main railway station and the Öresund bridge. The agreement also comprises renewal services on the track and electrification systems.

Sund & Baelt Holding A/S is a Danish state-owned company operating and maintaining the road and rail link across Storebælt, the Öresund motorway and the Öresund railroad line on Amager. Sund & Bælt owns 50% of Öresundsbro Konsortiet which owns and operates the Öresund bridge. The other half of the company is owned by the Swedish state-owned company SVEDAB AB.

Fredrik Häggström, President - Eltel Rail & Road comments: "We are very happy to have signed this agreement with Sund & Bælt. It proofs the trust that the Danish infrastructure owners have in Eltel in terms of competitiveness and with focus on quality and safety. This contract is a cornerstone in our strategy to establish a sound and broader position on the Danish rail and road market. Eltel aims to achieve a complete service portfolio ranging from various kinds of projects to infrastructure upgrades and maintenance services”.

About Eltel

Eltel is a leading European provider of technical services for critical infrastructure networks – Infranets – in the segments of Power, Communication and Transport & Security, with operations throughout the Nordic and Baltic regions, Poland, Germany, the United Kingdom and Africa. Eltel provides a broad and integrated range of services, spanning from maintenance and upgrade services to project deliveries. Eltel has a diverse contract portfolio and a loyal and growing customer base of large network owners. The current number of employees is approximately 9 300. In 2014 Eltel’s net sales amounted to EUR 1 242 million. Since February 2015, Eltel AB is listed on Nasdaq Stockholm.

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