(CercleFinance.com) – Earlier this year, Telenor began a process of evaluating the creation of a passive ownership company for fiber optic infrastructure with a minority co-investor.
Telenor has now reached an agreement to divest 30% of the newly created company, Telenor Fiber AS, in Norway, to a consortium led by KKR and which includes Oslo Pensjonsforsikring as a co-investor.
The newly created company is a subsidiary of Telenor and will be part of the infrastructure sector.
The company will own the passive fiber assets in Norway. This includes 130,000 km of cables, connecting more than 560,000 homes. The assets of the company will be transferred from Telenor Norway as part of a spin-off process prior to the completion of the transaction.
The agreed sale price represents an enterprise value for the Norwegian fiber business of NOK 36.1 billion, or proceeds of approximately NOK 10.8 billion for Telenor. The business generated pro forma EBITDA of NOK 1.7 billion in 2021.
Telenor retains control of the company with 70% of the shares. The transaction is expected to be completed in early 2023.
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