By Dominic Chopping

STOCKHOLM--Patricia Industries, a company owned by Investor AB, has agreed to divest its 40% stake in Three Scandinavia's telecom tower business and assets.

The deal sees Patricia Industries transfer its share of Three Scandinavia's passive network infrastructure assets to CKH Networks, an operator of CK Hutchison Holdings Ltd.'s European tower business.

Following the transfer, CKH Networks will be taken over by Cellnex Telecom S.A. in a deal worth 10 billion euros ($11.8 billion). Patricia Industries will receive 5% of the sale price, or EUR500 million.

The transaction is expected to close in 2021.

Investor is the investment vehicle of Sweden's prominent Wallenberg family and holds stakes in some of the country's largest companies, including telecom giant Ericsson, home appliance manufacturer Electrolux AB and lender Skandinaviska Enskilda Banken AB.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

11-12-20 0754ET