Multinational network provider, Telia Company has entered into an agreement to sell 100% of its operations and network assets in Denmark to fibre broadband and electricity provider, Norlys at an expected enterprise value of DKK 6.25bn (£7.7m), on a cash and debt-free basis.
Telia says that its 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, the combination of Telia’s mobile position with Norlys’ infrastructure position creates an opportunity to create a new national challenger with a committed long-term owne. The acquisition will see Norlys continue to build on its position as an integrated telecom and energy group.
Allison Kirkby, Telia Company President and CEO, says: “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 of both energy and digital infrastructure. 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.”
Niels Duedahl, Norlys CEO, adds: “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. 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.”
The transaction is currently subject to final and binding agreements, approval from Norlys’ owners and customary regulatory approvals. It is expected to close by the first quarter of 2024.
