French telecoms group Iliad, led by billionaire Xavier Niel, has agreed to buy a 19.8% stake in Swedish operator Tele2 from investment firm Kinnevik for 13 billion crowns ($1.26 billion), the companies said on Monday.

The deal, which values Tele2 at a 13% premium to its closing price on Feb 23, will be completed in three stages, subject to regulatory approvals.

Iliad will hold less than 30% of the voting rights in Tele2 after the transaction. Iliad, which is not listed, is pursuing a strategy of consolidating the European telecoms market.

Last year, it acquired a 2.5% stake in Vodafone and made two unsuccessful bids for its Italian unit.