Telia Enters Final Binding Agreement to Sell Danish Operations to Norlys for DKK 6.25 Billion

Reported by Srikapardhi September 15th, 2023 at 05:01 pm

Telia Company has entered into a final and binding agreement to sell 100 percent of its operations and network assets in Denmark to Norlys for a total valuation of DKK 6.25 billion.

Highlights

Telia Company finalizes agreement to sell Danish operations to Norlys.
Valuation of DKK 6.25 billion equates to 8.9 times Telia Denmark's 2022 EBITDA.
The deal is structured on a cash and debt-free basis.

Telia Enters Final Binding Agreement to Sell Danish Operations to Norlys for DKK 6.25 Billion
The Swedish telecommunications company, Telia Company, has officially entered a final and binding agreement to sell 100 percent of its operations and network assets in Denmark to Norlys for a total valuation of DKK 6.25 billion. The company announced this development in an official statement released on Friday.

Also Read: Eltel and Telia Finland Sign EUR 30 Million One Year Contract Extension

Telia Company Sells Danish Operations to Norlys

According to Telia, the sale agreement, initially announced on April 25, 2023, as reported by TelecomTalk, aligns with Telia's commitment to streamlining its operations and assets. This strategic realignment is in line with Telia's strategy to focus on markets in which there is a clear path to securing and defending leading market positions.

Also Read: Telia to Sell Its Operations and Network Assets in Denmark to Norlys

Valuation and Transaction Structure

The valuation of DKK 6.25 billion for this transaction corresponds to 8.9 times Telia Denmark's reported EBITDA for the year 2022. The deal is structured on a cash and debt-free basis, the announcement said.

However, the successful completion of this transaction remains subject to certain conditions. Approval from Norlys' owners and customary regulatory approvals are necessary steps before finalizing the sale. It is expected that the transaction will be concluded no later than the first quarter of 2024, allowing Telia to execute its strategic objectives effectively.

This development helps Telia Company align its portfolio and focus on strategic markets, ensuring a stronger and more competitive presence in the telecommunications sector.

Also Read: Telia to Initiate 3G Network Shutdown in Finland for 4G, 5G From September

Net-zero science-based targets approved by SBTi

In a previous update, Telia Company shared that its objectives, aimed at attaining net-zero greenhouse gas (GHG) emissions throughout its value chain by 2040, have received approval from the Science Based Targets initiative (SBTi). Furthermore, the SBTi has confirmed the validation of Telia's revised near-term and newly introduced long-term targets.

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Srikapardhi Telecom Analyst

Passionately following the Indian #Telecom Industry for over a decade from Business, Consumer and a Technical perspective. My primary focus area is Consumer & Digital Experience.