Telenor to control DSL provider Glocalnet

9 Feb 2006

Norwegian telecoms group Telenor has tabled a bid to take overall control of Swedish broadband operator Glocalnet. Telenor paid SEK136 million (EUR14.64 million) to up its existing stake in Glocalnet from 36.6% to 50.1%, triggering a public buyout offer for the remaining shares in the company, priced at SEK4 (EUR0.43) each. If the offer is accepted by all shareholders, the Norwegian firm will pay an additional SEK500 million (EUR54 million). Subject to regulatory approval, the public offer will begin in March.

Glocalnet had 92,000 ADSL customers at the end of September 2005, making it Sweden’s fourth largest broadband provider. In March 2005 it launched a 24Mbps service in 70 towns and cities from Malmo in the south to Haparanda in the north. 8Mbps broadband coverage was extended in June 2005 through a deal with Skanova. According to Telenor, Glocalnet accounted for some 20% of the country’s xDSL growth in 2005.

Sweden, Telenor Broadband Services, Telenor Group