Phone Family darkened bad news – Swedish Dagbladet

In the pictures from listing on the First North looks Phone Family’s CEO Jon Hjertenstein happy when he calls in the stock market at the beginning of June this year. But today, he has not as much to laugh about. The stock has slumped 74 percent from the market price of 18 crowns. The reason splendor collapse is that both Telia and Tele2, which together accounted for 31 percent of sales, terminated its supplier agreements.

Phone Family’s leadership has at least half a year, then several months before the listing on First North, has been aware that both TeliaSonera and Tele2 not been satisfied.

The complaints, including from customers who had to pay double subscription or to pay more than they thought, have flowed into the Consumer Agency and Consumer Complaints. Both Telia and Tele2 says to SvD Business that in several months trying to get Phone Family to change their practices. But the task is not in the Phone Family’s prospectus for the listing.

– We performed to Phone Family that they did not live up to the quality standards we set for partners in sales. We were in about six months we brought the discussion clear that we wanted to see a change for us to be willing to continue with them as a supplier, says Stefan Backman, general counsel at Tele2 Sweden.

Tele2 said up their contract at the end of June this year. The same message comes from TeliaSonera, which last week said its contract with Phone Family. Due to question marks about Phone Family’s quality renegotiated contract before the summer so that Telia’s notice period was reduced to one month.

– We have had monthly monitoring and management have very well understood where we wanted with our meetings and what quality we want to see. But we did not see any improvement at the end of the sales force, says Hans Carlsson, head of Telia’s retail business in Sweden.

came as a surprise to Phone Family Telia said the agreement?
– No, it did not. It is part of the consequence of how we design our agreements. Is not the quality level high enough, so there is the risk that the dealer no longer have the opportunity to sell our products and services.

Phone Family’s president and director Jon Hjertenstein rejects both Telia and Tele2′s data and says it came as a “complete surprise” that the agreements were terminated.

– We have had an ongoing dialogue with the operators for four years. I do not feel that it was different from the last six months.

Telia changed shortly before listing his notice period from three to one month. Why?

– I can not go into because the agreements are confidential.

The three founders Jon Hjertenstein, Henning Bengtsson and Kai Hjertenstein could have earned big money on the note. According to the prospectus, they wanted to sell half a million equities, which sommest would have given them 9 million per person. But there were not enough people who accepted the offer and now it is rather they who lost the most in the stock collapse. Jon Hjertenstein says that neither he nor anyone else in the lead sold any shares since listing.

The FSA which reviews and approves a prospectus for an IPO.

– If it is true that they were aware that the contracts were about to be terminated, it does not look good. The Board is responsible for ensuring that the information is correct, says Maria Samuelsson, head of the prospectus unit at the FSA.

– Prospectus regulations are extensive and extremely detailed. There is nothing explicit in the rules that says that issuers must disclose to supplier contracts are about to be terminated. However, one must specify risk factors and then you should also take business-related risks. Normally if you are dependent on major supply agreements, there should be a description of this in the risk section, she continues.

Do you know more? Contact SvD Enterprise reporter: frida.sundkvist@svd.se.