Telia sells Danish operations to Norlys
Swedish telco Telia is selling
100 % of its operations and
network assets in Denmark to
Denmark ’ s largest integrated
energy and telecommunications
group , Norlys , at an expected
enterprise value of DKK 6.25
billion (€ 838m ), on a cash and
debt-free basis .
The valuation is equivalent
to 8.9x Telia Denmark ’ s
2022 reported EBITDA . The
transaction is subject to final
and binding agreements ,
approval from Norlys ’ s owners
and customary regulatory
approvals , with closing expected
in Q1 2024 at the latest .
Telia ’ s strategy is to focus on
markets where there is a clear
path to securing and defending
a leading market position .
Having considered a number of
strategic options in Denmark
over several years , Telia says the
combination of its strong mobile
position with Norlys ’ s strong
infrastructure position creates
a unique opportunity to create
a new national challenger with
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a committed long-term owner , while crystallising immediate value for Telia . As a result of the acquisition , Norlys will continue to build on its position as an integrated telecom and energy group that exists for the benefit of Danish households and enterprises .
“ Today ’ s announcement presents an exciting opportunity for our Danish business and colleagues to become part of a new national challenger , with owners who are renowned for their long-term view
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of both energy and digital infrastructure ,” declared Allison Kirkby , Telia Company president and CEO . “ The transaction crystallises value from both the outstanding work of the Telia Denmark team who have led such an impressive turnaround of the business during the last 18 months , and from the leading 5G digital infrastructure that we have built up in the country . After closing , our Danish customers will have access to a broader set of products and services from |
Norlys , and Telia will focus even more on markets where we can sustain or build a leading position .”
“ Combining Telia ’ s mobile network with our fibre business will enable Norlys to provide a full-service solution in Denmark , paving the way for significant growth opportunities ,” added Niels Duedahl , Norlys CEO . “ A strong mobile arm will expand our position as the number one challenger in the Danish market and add to our presence across both the digital and green value chains . Once this transaction closes , I very much look forward to welcoming our new , talented employees in Denmark . I have been impressed by the significant improvements in the business over the past 18 months , and I am convinced that our new colleagues will contribute to the Norlys group with a strong customer centric and digital mindset .”
Telia intends to use the transaction proceeds to reduce debt .
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4 EUROMEDIA |