Swedish incumbent operator TeliaSonera is reportedly looking to sell its Norwegian broadband subsidiary in a deal that could raise as much as SKr1.5bn (US$214m).
An investment memorandum for the group’s NextGenTel unit has been issued to potential…
Swedish incumbent operator TeliaSonera is reportedly looking to sell its Norwegian broadband subsidiary in a deal that could raise as much as SKr1.5bn (US$214m).
An investment memorandum for the group’s NextGenTel unit has been issued to potential buyers, reported Swedish business daily Dagens Industri citing sources.
TeliaSonera, which acquired the group in 2006, declined to comment on the speculation.
NextGenTel is Norway’s second-largest operator in the broadband market, offering services including internet, VoIP and IPTV. However, it has been experiencing heavy competition in the country, where it competes with local rivals Telenor, Tele2 and Ventelo.
Reporting financial results for the three months to the end of March 2012, TeliaSonera said net sales for its Norwegian broadband services grew 1.6% in local currency to the equivalent of SKr268m (US$38m), because of a “smaller decline in average revenue per user than in previous quarters as well as increased equipment sales”. EBITDA excluding non-recurring items for this division increased 5% to SKr41m (US$5.9m).
Norden Investment Banking acted as TeliaSonera’s financial adviser for its 2006 acquisition of all of NextGenTel’s shares.
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