“After careful evaluation of our options for NextGenTel, we have decided to prioritize other parts of our business where we believe we can achieve higher returns. TeliaSonera will continue to serve the customers in Norway through its mobile brands NetCom and Chess.”
TeliaSonera (STO:TLSN) (LSE:TEE) (Nasdaq:TLSN) has signed an agreement to divest its Norwegian subsidiary NextGenTel to Telio, a company listed on the Oslo Stock Exchange. The sales price is NOK 601 million (approximately SEK 700 million) on a cash and debt free basis (enterprise value).
TeliaSonera acquired NextGenTel in 2006 and the company has operated as a subsidiary in the TeliaSonera group. For the first nine months of 2012, the company reported revenues of NOK 693 million and an EBITDA excluding non-recurring items of NOK 118 million.
Following a strategic review of the operations, TeliaSonera has concluded that NextGenTel does not constitute the appropriate platform to compete successfully in the Norwegian broadband market. Malin Frenning, President Business area Broadband Services comments: “After careful evaluation of our options for NextGenTel, we have decided to prioritize other parts of our business where we believe we can achieve higher returns. TeliaSonera will continue to serve the customers in Norway through its mobile brands NetCom and Chess.”
Handelsbanken Capital Markets has acted as financial advisor to TeliaSonera. The agreement is subject to approval from authorities. TeliaSonera will receive NOK 531 million in cash upon closing with the remaining consideration of NOK 70 million is to be paid in the form of Telio shares. TeliaSonera will recognize a loss of SEK 1.6 billion in the fourth quarter of 2012 from the write-down of goodwill.
TeliaSonera AB discloses the information provided herein pursuant to the Swedish Securities Markets Act and/or the Swedish Financial Instrument Trading Act. The information was submitted for publication at 8 a.m CET on December 20, 2012.
Statements made in the press release relating to future status or circumstances, including future performance and other trend projections are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to many factors, many of which are outside the control of TeliaSonera.
TeliaSonera provides network access and telecommunication services in the Nordic and Baltic countries, the emerging markets of Eurasia, including Russia and Turkey, and in Spain. TeliaSonera helps people and companies communicate in an easy, efficient and environmentally friendly way. Our ambition is to be number one or two in all our markets, providing the best customer experience, high quality networks and cost efficient operations. TeliaSonera is also the leading European wholesale provider with a wholly-owned international carrier network. In 2011, net sales amounted to SEK 104 billion, EBITDA to SEK 36.9 billion and earnings per share to SEK 4.20. The TeliaSonera share is listed on NASDAQ OMX Stockholm and NASDAQ OMX Helsinki. Read more at www.teliasonera.com.
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