Telia to Sell Its Operations and Network Assets in Denmark to Norlys

Telia, the Swedish telecom operator, has announced a 100 per cent sale of its Danish operations and assets to the Danish telecom group Norlys. The deal is worth 6.25 billion Danish kroner (DKK), equivalent to SEK 9.5 billion, and is expected to be completed by the first quarter of 2024 at the latest. Telia says that the sale is part of its strategy to focus on markets where it can have a clear path to leading market position.

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Create a Strong National Carrier

According to Telia, after considering several strategic options in Denmark over the years, it found that combining its strong mobile position with Norlys’ strong infrastructure position would create a new national challenger with a committed long-term owner, while also crystallizing immediate value for Telia.

Norlys, which supplies electricity and internet to over one million Danish households, says that the acquisition of Telia’s mobile network will allow it to provide a full-service solution in Denmark, creating significant growth opportunities.

Also Read: Telia Shuts Down 3G Network in Denmark to Focus On 4G and 5G

Agreement

The agreement is a binding term sheet that values Telia’s Danish operations and assets at USD 920 million on a cash and debt-free basis. Telia has said it plans to use the proceeds from the sale for deleveraging purposes. The valuation is equivalent to 8.9x Telia Denmark’s 2022 EBITDA.