Sweden’s Telia to sell Danish unit to Denmark’s Norlys – ET Telecom

Stockholm: Swedish telecom operator Telia said Tuesday it had entered into an agreement to sell its Danish operations and assets, valued at 6.25 billion Danish kroner ($920 million), to Danish telecom group Norlys.

Telia said the sale, which it expected to be concluded by the first quarter of 2024, was part of its strategy to focus on markets where it can have a leading market position.

“Having considered a number of strategic options in Denmark over several years, the combination of Telia’s strong mobile position with Norlys’ strong infrastructure position creates a unique opportunity to create a new national challenger with a committed long-term owner, while crystallising immediate value for Telia,” the Swedish company said in a statement.

The agreement was “a binding term sheet” valuing the group at $920 million, “on a cash and debt-free basis”, Telia said.

Norlys, which supplies more than one million Danish households with electricity and internet, said in the same statement that combining Telia’s mobile network with its own fiber business would “enable Norlys to provide a full-service solution in Denmark, paving the way for significant growth opportunities.”

Telia plans to use the proceeds of the deal “for deleveraging purposes,” it said.