Telia struck an agreement with investment company Polhem Infra to sell its carrier business for SEK9.45 billion ($1 billion), as recently appointed CEO Allison Kirkby continues to streamline the operator’s business.
In a statement, Telia explained the proposed sale terms would include the establishment of a long-term partnership between it and Telia Carrier, to continue to provision services and develop new solutions for its customers.
Under Polhem Infra’s ownership, Telia added the carrier business would be able to drive investment in network development, services and customer care programmes as it aims to bring benefits to content providers, operators and enterprises.
The sale represents another divestment under Kirkby’s relatively short time in charge so far, after it sold a major stake in operator Turkcell in June for $530 million.
Kirkby then announced a review of its cost base, in an attempt to make efficiency savings, which she said was one of her immediate priorities.
Commenting on the Polhem Infra deal, Kirkby said the majority of the proceeds would be used to strengthen its balance sheet, and provide a solid financial base for Telia.
”The divestment of Telia Carrier highlights the value Telia has built in its digital infrastructure – and today we are able to crystallise some of that value. As a consequence, we can now fully concentrate on our Nordic and Baltic footprint,” she added.
The sale is still subject to regulatory approvals, and is expected to complete in the first half of 2021.Subscribe to our daily newsletter Back