Telenor Sells Stake in Norwegian Fiber Business For $1 Billion
October 07 2022 - 3:48AM
Dow Jones News
By Dominic Chopping
Telenor ASA said Friday it has agreed to sell 30% of Telenor
Fiber AS in Norway to a consortium led by KKR & Co. Inc. and
Oslo Pensjonsforsikring for around 10.8 billion Norwegian kroner
($1.01 billion).
Telenor Fiber is a newly established subsidiary that will own
the company's fibre infrastructure assets in Norway, including
130,000 kilometers of cables that connect more than 560,000 homes,
with Telenor maintaining control of both the operations and
processes in the company.
The agreed sales price represents an enterprise value for the
Norwegian fibre business of NOK36.1 billion, it said.
Telenor added that it intends to use around 30% of the proceeds
for share buybacks.
The agreement also includes a right for Telenor to buy back the
stake in the event of a potential future sale. Relevant government
authorities have agreed that the transaction safeguards critical
security and regulatory considerations, but given national and
societal interest, they have agreed that the government can
exercise the right to acquire the stake if Telenor chooses not
to.
The transaction is expected to be completed early 2023.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
October 07, 2022 03:33 ET (07:33 GMT)
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