Norway is likely to cut its stake in Telenor from 54% to 34% after two smaller political parties backed the minority government’s proposal to continue the privatisation of the former state-operated monopoly.
In a joint statement, the Liberal Party and…
Norway is likely to cut its stake in Telenor from 54% to 34% after two smaller political parties backed the minority government’s proposal to continue the privatisation of the former state-operated monopoly.
In a joint statement, the Liberal Party and the Christian Democrats said they were satisfied with the assurances they had received that the incumbent’s critical infrastructure would be safeguarded.
Telenor’s share price fell 3% today as investors reacted to the prospect of 20% of the company being sold on the open market.
As TelecomFinance went to press Telenor had a market capitalisation of US$32.3bn, giving the shares to be sold a value in the region of US$6.5bn.
The government’s plan to sell Telenor shares was presented to the Norwegian parliament in June last year as part of its drive to reduce the state’s role in the economy.
The Liberals and Christian Democrats said Norway will still have control over Telenor’s infrastructure, natural resources, and technology and information related to national security.
Monica Mæland, Minister of Trade and Industry, has previously said that Telenor’s headquarters would stay in Norway.
Telenor declined to comment on the development.
The only other investor besides the government with more than a 2% stake in Telenor is Folketrygdfondet, the state-owned pension fund, with 4.72%.
Telenor was part-privatised in 2000 and listed on the Oslo Stock Exchange and Nasdaq. The state subsequently held a 77.7% stake, which now stands at 53.97%.
