Sweden’s TeliaSonera has announced that it has inked a deal under which it will sell its Norwegian subsidiary NextGenTel to Telio in a deal valued at NOK601 million (USD107.7 million) on a cash and debt free basis. With Handelsbanken Capital Markets having acted as financial advisor to TeliaSonera, the latter expects to receive NOK531 million in cash upon closing the transaction, with the remaining consideration of NOK70 million to be paid in the form of Telio shares. The agreement is subject to approval from the relevant authorities.
In revealing its plan to sell off the unit, TeliaSonera noted that the decision had been made following a strategic review of its operations, on the back of which the Swedish group ‘concluded that NextGenTel [did] not constitute the appropriate platform to compete successfully in the Norwegian broadband market’. TeliaSonera has said it intends to continue serving customers in Norway via its mobile brands NetCom and Chess.
Commenting on the development, Malin Frenning, TeliaSonera’s President of Business Area Broadband Services, noted: ‘After careful evaluation of our options for NextGenTel, we have decided to prioritise other parts of our business where we believe we can achieve higher returns.’