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.
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.
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.
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.