Television company

Telenor establishes a fiber company in Norway

Earlier this year, Telenor launched a process to evaluate the creation of a passive fiber infrastructure ownership company with a minority co-investor. Telenor has now reached an agreement to divest 30% of the newly created company, Telenor Fiber, in Norway to a consortium led by KKR, investing as part of its core infrastructure strategy. The consortium includes Oslo Pensjonsforsikring as a co-investor.

The newly created company is a subsidiary of Telenor and will be part of the Infrastructure business area. 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 closing of the transaction. Telenor Norge will be the company’s sole customer and all operational processes will remain under Telenor’s full control. Telenor has conducted an extensive consultation process with the relevant government authorities, who have provided their general view that the transaction safeguards critical safety and regulatory considerations.

The agreed sale price represents an enterprise value for the Norwegian fiber business of NOK 36.1 billion (€3.4 billion), generating revenue of approximately NOK 10.8 billion for Telenor. The company generated pro forma EBITDA of NOK 1.7 billion in 2021.

“We are executing the strategy presented at Capital Markets Day in September. This transaction highlights the value of our infrastructure and unlocks capital to support the continued deployment of high fiber in Norway, and we are attracting strong investors with a long-term horizon. Following the transaction, Telenor will offer that part of the proceeds be used to buy back shares. We believe this transaction benefits our stakeholders while safeguarding future investments in Norwegian fibre,” said Tone Hegland Bachke, EVP and CFO of Telenor Group.

“We are excited to invest long-term capital in Norwegian infrastructure. KKR has significant experience in investing in telecommunications infrastructure, and we look forward to supporting Telenor in its fiber strategy in Norway,” said Julian Barratt-Due, Director, European Infrastructure at KKR.

“We are proud to be part of the investment and look forward to further strengthening Norway’s fiber infrastructure together with Telenor and KKR,” added Lars Haram, Investment Director at Oslo Pensjonsforsikring.