TELNY - Telenor gains on deal to sell 30% of Norway fiber unit
- Telenor ( OTCPK:TELNY ) is 2.3% higher in U.S. trading after the company agreed to sell a minority stake in its Norwegian fiber network to an investor group including KKR.
- Telenor will receive 10.8B kroner in the deal - about $1B - and use some 30% of those proceeds to repurchase shares to help soften the impact of new investment.
- KKR and Oslo Pensjonsforsikring lead the consortium buying into a deal that values Telenor's Norwegian fiber at 36.1B kroner (about $3.38B).
- Telenor has been looking to sell a stake in the fiber unit in order to free up capital to build yet more fiber.
- “We are bringing in strong investors with a long-term horizon,” Chief Financial Officer Tone Hegland Bachke says. “This transaction benefits our stakeholders while safeguarding future investments in Norway’s fiber.”
For further details see:
Telenor gains on deal to sell 30% of Norway fiber unit