Telenor Divests 30% Of Norway Fiber Company for $1B

Telenor ASA TELNF TELNY agreed to divest a minority stake in its Norway fiber assets to a consortium led by KKR & Co Inc KKR and Oslo Pensjonsforsikring for 10.8 billion kroner ($1 billion).
The deal is part of a strategy by Norway’s biggest telecommunications company to highlight the value of its infrastructure and free up capital to lay down more fiber in the country, Bloomberg reports.
The price represents an enterprise value for the Norwegian fiber business of 36.1 billion kroner.
Also Read: Telecom Italia Seeks To Divest $21.5B Landline Network To Cut Down On Debt, Commence Fiber Launch
Telenor plans to use part of the proceeds to buy back shares.
The business generated a proforma EBITDA of 1.7 billion kroner in 2021.
The newly established company is a subsidiary of Telenor and will be a part of the Infrastructure business area.
It will own the passive fiber assets in Norway and includes 130,000 kilometers (81,000 miles) of cable.
Telenor maintains control of the company with 70% of the shares.
The transaction will likely be complete in early 2023.
Price Action: TELNF shares closed at $8.95 on Thursday.