Telenor Group has entered into an agreement to sell its assets in Central and Eastern Europe (CEE) to private investment fund PPF Group for NOK27 billion (USD3.4 billion) on an enterprise value basis. The transaction – expected to be completed in Q3 2018 – includes Telenor’s wholly-owned mobile operations in Hungary, Bulgaria, Montenegro and Serbia, and the technology service provider Telenor Common Operation. Telenor Group’s CEO Sigve Brekke said: ‘Telenor Group’s strategy is based on growth, efficiency and simplification. With the sale of our CEE assets, we take an important step in simplifying and focusing Telenor’s portfolio on the regions where we see the strongest potential for value creation. Following this transaction, Telenor’s footprint will consist of integrated fixed and mobile operations in Scandinavia, and strong mobile positions in Asia. Telenor is confident that PPF Group’s experience in both the region and sector will make it a good owner of the CEE assets.’ The agreed transaction price corresponds to an EV/EBITDA multiple of 6.4 based on 2017 EBITDA. The parties have agreed on a deferred purchase price, where EUR400 million (USD492 million) of the proceeds will be paid in four instalments over four years.