Telenor has agreed to sell a portfolio consisting of 85 development properties inNorway . The divestment is part ofTelenor's simplification and modernization program, and encompasses properties that are not needed once the planned copper net decommissioning is completed. Four of the properties are sold on behalf ofTelenor's Pension Fund . Buyer under the agreement is a group consisting of (in alphabetical order) FagerStad Utvikling AS,Fredensborg AS , Fredensborg Bolig AS,Johan Johannson Eiendom AS and Norgesgruppen Eiendom AS, all professional property owners and developers. Gross property value in the transaction isNOK 1.4 billion , includingNOK 360 million allocated to Telenor Pensjonskasse and an earn-out fee related to future development and certain criteria regarding volume. Payment under the earn-out is expected within 4 years. A customary tax rebate will be deducted from the gross property value. Completion of the transaction will take place on or about 1 September.Telenor will then lease back the 85 properties in their entirety for a period of up to 5 years. The buyer will in parallel re-zone and develop the properties so that these may be better utilized. After the initial lease period,Telenor will only rent small and limited areas to host fiber and mobile equipment, reducingTelenor's cost base. The divestment will be recognized inTelenor's financial statements upon completion of the transaction.Telenor's accounting gain will be aroundNOK 500 million .Arctic Securities and UNION Norsk Næringsmegling have acted asTelenor's financial advisors and Haavind Law firm asTelenor's legal advisor. Investor Relations Øystein Myrvold, +47 99230460Kristine Devold , +47 90050780
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