- Telenor ASA PHONE TELNY agreed to divest a minority stake in its Norwegian fiber optic assets to a consortium led by KKR & Co Inc KKR and Oslo Pensjonsforsikring for 10.8 billion crowns ($1 billion).
- The deal is part of a strategy by Norway’s largest telecoms company to highlight the value of its infrastructure and free up capital to roll out more fiber across the country. Bloomberg reports.
- The award represents an enterprise value for the Norwegian fiber business of 36.1 billion kroner.
- Also read: Telecom Italia intends to sell $21.5 billion fixed-line network to reduce debt and begins rolling out fiber optic cables
- Telenor plans to use part of the proceeds to buy back shares.
- The company generated pro forma EBITDA of 1.7 billion kroner in 2021.
- The newly formed company is a subsidiary of Telenor and will be part of the Infrastructure division.
- It will own the passive fiber optic facilities in Norway and will include 130,000 kilometers (81,000 miles) of cable.
- Telenor retains control of the company with 70% of the shares.
- The transaction is expected to close in early 2023.
- Price promotion: TELNF shares closed at $8.95 on Thursday.
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