Telia expects the transaction to close in early April
Telia Company has today received regulatory approval from the Danish Competition Council for the intended sale of Telia Denmark to Norlys. The proposed transaction was announced on 25 April, 2023. Telia now expects the transaction to close in early April.
The deal covers 100% of Telia Denmark’s operations and network assets for DKK 6.25 billion (€838.51 million) on a cash and debt-free basis. The valuation is equivalent to 8.9x Telia Denmark’s 2022 reported EBITDA.
Although the transaction is still subject to final and binding agreements, approval from Norlys’ owners and customary regulatory approvals. It is expected to close in in Q1 2024 at the latest.
Telia Denmark’s strengths are mostly in mobile. Norlys supplies more than 1 million households in Denmark with electricity, TV and internet in cities and their rural outskirts and already owns Netselskabet N1.
The deal was struck while Allison Kirkby was Telia Company’s President and CEO. She is now the CEO of BT Group.
Niels Duedahl, Norlys CEO, said when the deal was first mooted, “Combining Telia’s mobile network with our fibre business will enable Norlys to provide a full-service solution in Denmark, paving the way for significant growth opportunities.
A strong mobile arm will expand our position as the number one challenger in the Danish market and add to our presence across both the digital and green value chains.”
Telia said it would use the proceeds to pay off debt.