Swedish incumbent TeliaSonera has sold its Norwegian subsidiary NextGenTel to Oslo-listed company Telio for NOK601m (US$108.3m).
In an announcement today, the company said that NextGenTel “does not constitute the appropriate platform to compete…
Swedish incumbent TeliaSonera has sold its Norwegian subsidiary NextGenTel to Oslo-listed company Telio for NOK601m (US$108.3m).
In an announcement today, the company said that NextGenTel “does not constitute the appropriate platform to compete successfully in the Norwegian broadband market”.
TeliaSonera will receive NOK531m (US$95.7m) in cash with the remaining NOK70m (US$12.6m) paid in the form of Telio shares.
“TeliaSonera will recognize a loss of SEK1.6bn (US$250m) in the fourth quarter of 2012 from the write-down of goodwill,” the statement added.
Handelsbanken Capital Markets is advising TeliaSonera on the sale, which is subject to regulatory approval.
For the first nine months of 2012, NextGenTel reported revenues of NOK693m (US$125m) and an EBITDA excluding non-recurring items of NOK118m (US$21.3m).
Malin Frenning, president of business area broadband services at TeliaSonera, said in today’s statement that the company has “decided to prioritise other parts of our business where we believe we can achieve higher returns” and that TeliaSonera will continue to operate in Norway through its mobile brands NetCom and Chess.
