Telenor Sells Stake in Norwegian Fiber Business For $1 Billion

By Dominic Chopping

Telenor ASA said Friday it has agreed to sell 30% of Telenor Fiber AS in Norway to a consortium led by KKR & Co. Inc. and Oslo Pensjonsforsikring for around 10.8 billion Norwegian kroner ($1.01 billion).

Telenor Fiber is a newly established subsidiary that will own the company's fibre infrastructure assets in Norway, including 130,000 kilometers of cables that connect more than 560,000 homes, with Telenor maintaining control of both the operations and processes in the company.

The agreed sales price represents an enterprise value for the Norwegian fibre business of NOK36.1 billion, it said.

Telenor added that it intends to use around 30% of the proceeds for share buybacks.

The agreement also includes a right for Telenor to buy back the stake in the event of a potential future sale. Relevant government authorities have agreed that the transaction safeguards critical security and regulatory considerations, but given national and societal interest, they have agreed that the government can exercise the right to acquire the stake if Telenor chooses not to.

The transaction is expected to be completed early 2023.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

10-07-22 0333ET