Telenor mulls approach for CEE units - Mobile World Live

Telenor mulls approach for CEE units

26 JAN 2018

Telenor said it is considering an expression of interest made for four of its businesses in Central and Eastern Europe (CEE).

The offer – described by the operator as “inbound and unsolicited” – covers its units in Hungary, Bulgaria, Montenegro and Serbia, and comes a week after reports in the Bulgarian press suggested a bid of €2 billion was being prepared for its operations across three of the four markets.

In a statement, Telenor said it would assess the offer by the end of Q1 adding: “Telenor’s CEE companies have strong market positions and solid financial results, and contributed in 2017 with approximately 9 per cent of Telenor Group’s revenues and approximately 8 per cent of EBITDA before other items.”

Last week’s reports floated US investment company KKR – which was linked with Telenor’s Serbia unit in June 2017 – as the potential buyer.

Although the offer was unsolicited, divestment of the assets would fit with Telenor’s fundraising and cost-cutting strategy being implemented by CEO Sigve Brekke (pictured) in a bid to return it to being “a growth company”.

Telenor is the second-largest operator by connections in Bulgaria, Serbia and Hungary with GSMA Intelligence estimating it held between 3 million and 3.5 million connections in each market at end Q4 2017.

It is the largest operator in Montenegro with 376,000 connections.

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Chris Donkin

Chris joined the Mobile World Live team in November 2016 having previously worked at a number of UK media outlets including Trinity Mirror, The Press Association and UK telecoms publication Mobile News. After spending 10 years in journalism, he moved...

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