Telia Danmark is now part of Denmark’s largest energy and telecoms group Norlys
Energy and telecommunications group Norlys has officially entered the Danish mobile market following the completion of the acquisition of Telia Danmark at an enterprise value of DKK 6.25 billion (€837.79 million), on a cash and debt-free basis. Telia Danmark’s approximately 1.9 million customer relationships and 800 employees are now part of the Norlys Group.
Telia Group said it use the transaction proceeds for deleveraging purposes and, following the closing of the transaction, Telia’s net debt/adjusted EBITDA is now in the lower part of its 2.0-2.5x target range. The operator said the transaction, first announced on 25 April 2023, is in line with its strategy of focusing on markets in which there is a clear path to securing and defending leading positions.
In September, Norlys signed an agreement with Telia Company on the acquisition of Telia’s Danish business, which also includes a 50 percent ownership of Denmark’s largest mobile network, the TT network. Later in September, a large majority of Norlys’s Board of Representatives voted yes to the acquisition and, in February, the competition authorities approved the transaction, which has now been completed.
“It is incredibly gratifying that we now have the keys in our hands. This is a day we have been looking forward to and preparing for for a long time,” said Norlys EVP end customer business Claus Flyger Pejstrup. “The Norlys brand will have a whole new relevance as a supplier of a full range of energy and telecommunications products for the home and business.”
“We are now fully competitive in the telecommunications area with mobile, TV and internet on both fibre and 5G,” he said. “Norlys will have a significant nationwide market position, which will push the competition and bring us closer to our customers – among other things, we will acquire 31 stores, which in the long term can sell our entire product portfolio.”
He added that in the short term, the change of ownership does not change anything for customers in Telia Denmark, who continue with their existing products and terms.
“The sale of our Danish business marks a significant milestone for Telia and I would like to thank everyone at both Telia and Norlys who worked for many months to make this successful divestment possible,” said Telia president and CEO Patrik Hofbauer (above).
“Telia will continue to support Norlys to ensure a smooth transition for our former customers in Denmark, who will benefit from gaining access to a broader set of products and services from Denmark’s largest integrated energy and telecommunications group,” he added.