7/2/2023 0 Comments Telenor appboxThe transaction will entail no change to Telenor’s regulatory obligations, including security and Norway’s Electronic Communications Act.Telenor Norway will still handle all customers, including wholesale, as per usual. The transaction will not affect customers.The transaction is expected to be completed early 2023.Telenor maintains control in the company with 70 percent of the shares.“We are proud to be part of the investment and look forward to further strengthening Norwegian fibre infrastructure together with Telenor and KKR”, says Lars Haram, Chief Investment Officer at Oslo Pensjonsforsikring. KKR has significant experience within telecom infrastructure investing, and we look forward to supporting Telenor with its fibre strategy in Norway”, says Julian Barratt-Due, Director, European Infrastructure at KKR. “We are very excited to be investing long-term capital behind Norwegian infrastructure. We believe this transaction benefits our stakeholders while safeguarding future investments in Norway’s fibre”, says Tone Hegland Bachke, EVP and CFO in Telenor Group. Following the transaction, Telenor will propose that parts of the proceeds are used for share buy backs. This transaction highlights the value in our infrastructure and unlocks capital to support continued high fibre roll-out in Norway, and we are bringing in strong investors with a long-term horizon. “We are executing on the strategy presented at the Capital Markets Day in September. The business generated a proforma EBITDA of NOK 1.7 billion in 2021. The agreed sales price represents an enterprise value for the Norwegian fibre business of NOK 36.1 billion, resulting in proceeds of approximately NOK 10.8 billion to Telenor. Telenor has conducted an extensive consultation process with the relevant government authorities, who have given their overall feedback that the transaction safeguards critical security and regulatory considerations. Telenor Norge will be the company’s only customer and all operational processes remain under full Telenor control. The company’s assets will be transferred from Telenor Norway in a demerger process prior to completion of the transaction. This includes 130,000 km of cables, connecting upwards of 560,000 homes. The company will own the passive fibre assets in Norway. The newly established company is a subsidiary of Telenor and will be a part of the Infrastructure business area. The consortium includes Oslo Pensjonsforsikring as a co-investor. Telenor has now reached an agreement to divest 30 percent of the newly established company, Telenor Fiber AS, in Norway to a consortium led by KKR, investing through its Core Infrastructure strategy. (Fornebu 7 October 2022) Telenor enters into a transaction supporting future investments in Norway’s telecom infrastructure.Įarlier this year, Telenor initiated a process of evaluating the establishment of a passive fibre infrastructure ownership company with a minority co-investor.
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