Telenor Acquires Bredbandsbolaget and Cybercity
May 23 2005 - 3:24AM
PR Newswire (US)
Telenor Acquires Bredbandsbolaget and Cybercity FORNEBU, Norway,
May 23 /PRNewswire-FirstCall/ -- Telenor has signed agreements with
the shareholders of Bredbandsbolaget in Sweden and Cybercity in
Denmark to acquire the two companies for SEK 6.0 billion and DKK
1.4 billion respectively. "The acquisitions of Bredbandsbolaget and
Cybercity strengthen Telenor's existing Nordic operations, and give
Telenor a strong position in the fast growing Nordic broadband and
datacom market," said Morten Karlsen Sorby, Executive Vice
President in Telenor. Telenor will benefit from synergies when
utilizing the backbone network capacities in each country. Future
cost savings between the acquired companies and existing Telenor
operations in Sweden (Telenor AB) and Denmark (SONOFON AS) adds up
to NOK 2.5 billion (net present value). Bredbandsbolaget is the
second largest provider of broadband services in Sweden with
335,000 customers, representing a 24 per cent market share.
Operating an all-IP fiber and DSL network, Bredbandsbolaget is
synonymous with high-speed broadband. The company launched
Voice-over-IP in 2003, and serves 80,000 voice customers today.
Bredbandsbolaget recently launched IP-TV services, thus offering
full triple-play. The purchase price for Bredbandsbolaget
(including debt) is SEK 6,033 million. Cybercity has consistently
improved its position as the third largest Danish supplier of
broadband services. Cybercity has 90,000 customers and 8 per cent
market share. Covering 70 per cent of Denmark with its own DSL
infrastructure, the company focuses on the high-end residential,
home office and SME segments. Cybercity is known for its high
quality solutions and excellent customer service. The purchase
price for Cybercity is DKK 1,385 million in cash on a debt-free
basis. Commenting on the transactions, Morten Karlsen Sorby,
Executive Vice President in Telenor, said: "Bredbandsbolaget and
Cybercity are both well-run companies, and they improve Telenor's
offering to both business and residential customers in the Nordic
region. The companies add scale and offer substantial synergy to
our Nordic operations. Broadband is an important distribution
channel for future voice and content services, and we are well
positioned for the high broadband growth in the Nordic region."
Bredbandsbolaget and Cybercity will continue to operate under their
current brands. Both acquisitions are expected to be completed
during June 2005, subject to approval from the Swedish and Danish
competition authorities, respectively. For more information, please
contact: Scott Engebrigtsen, head of information, Telenor ASA,
phone +47 90 04 34 84, To the editorial offices: Press and analyst
conference In connection with the acquisitions of Bredbandsbolaget
and Cybercity, a press and analyst conference will be held on
Monday 23. May at 09:00 CET at Auditorium A in the Telenor Expo
Visitors' Centre at Fornebu. The presentation will be given in
English. Internet streaming The press and analyst conference will
be streamed over the Internet, both live and in a recorded version
after the conference on http://www.telenor.com/ir. For more
information, please refer to the Telenor website. Conference call
and Q&A session You may also call in and listen to the
presentation on the phone. This service also allows you to ask
questions at the Q&A session at the end of the presentation. To
participate in the Conference Call, please register well before the
conference starts by calling (+47) 800 80 119 (from Norway) or
(+47) 23 00 04 00 (from Norway or abroad). Materials The
presentation used at the press and analyst conference will be made
available at http://www.telenor.com/ir. DATASOURCE: Telenor
CONTACT: Scott Engebrigtsen, head of information of Telenor ASA,
+47-90-04-34-84, Web site: http://www.telenor.com/ir
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