Sale of 30% of the Norwegian Fibre business completed
Feb 2, 2023
Fornebu – Telenor today closes the transaction to divest 30 percent of newly established Telenor Fiber AS, in Norway to a consortium led by KKR, investing through its Core Infrastructure strategy, with Oslo Pensjonsforsikring as co-investor.
The agreed sales price is based on an enterprise value of NOK 36.1 billion for the Norwegian fibre business which had a proforma EBITDA of NOK 1.7 billion in 2021.
“This transaction is an important milestone in our new strategy of reshaping Telenor. We are showing the value in Telenor's infrastructure while safeguarding future investments in Norway’s fibre. This will benefit Norwegian consumers, who can receive modern and robust connectivity as Telenor continues to strengthen is offerings”, says Jannicke Hilland, EVP of Telenor Infrastructure.
The divestment of 30 percent generates proceeds of NOK 10.8 billion to Telenor and as previously communicated Telenor intends to use part of the proceeds for share buy backs.
The transaction is in line with Telenor’s strategy to secure a continued high paced fibre roll out in Norway in the coming years while at the same time crystallising the value of the infrastructure business. Telenor aims to capture a substantial share of the remaining fibre market in Norway and will continue to strengthen fibre coverage in Norway and provide consumers with increased access to high speed fixed, mobile and TV offerings.
KKR has significant expertise in digital infrastructure and shares a long-term perspective on the Nordic telecoms market.
“We are very excited to invest and contribute to the long-term development of Telenor’s fibre strategy and infrastructure, building on KKR’s significant experience within digital infrastructure investing”, says Julian Barratt-Due, Director, European Infrastructure at KKR.
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