Swedish telecoms group Telia Company has agreed to sell its international carrier business Telia Carrier to the Scandinavian infrastructure investment firm Polhelm Infra. The deal, which is subject to regulatory approval, is valued at SEK9.45 billion (USD1.06 billion) on a cash and debt-free basis. At the same time, Telia Company enters a long-term strategic partnership with Telia Carrier, which it says will secure ‘continuous world-leading network solutions to Telia’s customers’.
Telia Carrier holds the top position in the global ranking of companies with internet backbone networks, with its content, services and operator customers accounting for 65% of global internet routes. Its network spans Europe, North America and Asia, connecting customers in more than 120 countries, with the Scandinavian footprint being particularly strong through the so-called Scandinavian Ring – the part of Telia Carrier’s network that connects major Baltic and Nordic cities. Telia Carrier reported net sales of SEK5.39 billion in 2019 and EBITDA of SEK500 million. Polhelm Infra is owned by a group of Swedish pension funds.
Allison Kirkby, President and CEO of Telia Company, said: ‘The divestment of Telia Carrier highlights the value Telia has built in its digital infrastructure – and today we are able to crystallise some of that value. As a consequence, we can now fully concentrate on our Nordic and Baltic footprint, while we at the same time have secured future access for our customers to Telia Carrier’s world-leading solutions, through a long-term strategic partnership.’