Telenor Group struck a deal with state-owned Space Norway to sell its satellite subsidiary for NOK2.4 billion ($221.7 million), the latest move in the operator’s push to optimise assets and focus on its core business.
Alongside the sale, the pair signed a letter of intent for collaboration covering business development projects around satellite capacity and related consulting services.
Telenor Satellite provides broadcasting services to homes and data communication in a range of environments, including offshore. It covers various markets across EMEA.
Space Norway CEO Dag Stolan indicated the deal would combine his company’s existing public sector work with Telenor’s commercial customer base, giving a “strong platform to grow the business in both sectors”.
Dan Ouchterlony, head of Telenor Amp, the division where its satellite unit resides, backed the new owner to “prioritise the required financial resources to realise the company’s potential”. He also noted the sale would allow Telenor to focus on its core business.
The deal is subject to approval by the Norwegian Parliament and is expected to close in January 2024.
Its move comes as the operator group continues to slim down its portfolio to focus on key areas, with the Telenor Amp division completing the sale of its stake in Working Group 2 last month and various moves in the group’s Asia operations.
During its Q3 earnings call last month, Telenor CEO Sigve Brekke highlighted it was “pushing forward with portfolio optimisation” in Asia and other divisions.
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