Telenor has announced that it has entered into an agreement with Space Norway for the sale of its Telenor Satellite subsidiary, at a price of NOK 2.36 billion (approx. US$217 million) on an enterprise value basis.
As Space Norway is wholly owned by the Norwegian Government, the transaction is still subject to approval by the Norwegian Parliament. Closing of the transaction is expected in January 2024.
In addition to TV broadcasting, Telenor Satellite provides data communication services to maritime customers in Europe and the Middle East, connecting approximately 1,800 vessels. It has three geostationary satellites that it fully owns and operates, with one more operated under a co-ownership arrangement.
“For more than 20 years, we have served our customers with premium, high-quality broadcasting and data services via satellite. Now the time has come for a new era for Telenor Satellite,” said Dan Ouchterlony, EVP and Head of Telenor Amp.
“With Space Norway, Telenor Satellite will have an industrial owner who has the right competence and who will prioritise the required financial resources to realise the company’s potential. We are proud of what we have achieved together and look forward to following the company’s future development.”
Telenor and Space Norway have already signed a letter of intent outlining a strategic partnership and possible joint business development initiatives, in particular regarding additional satellite capacity.
“The government will propose to the Parliament that Space Norway be provided with capital to finance the acquisition of Telenor Satellite,” said the Norwegian Minister of Trade and Industry, Jan Christian Vestre.
“The acquisition will contribute to the establishment of a major Norwegian satellite operator, which, together with a growing Norwegian space industry, can strengthen Norway as a space nation. At the same time, the acquisition ensures that Norway, in a time of increasing geopolitical unrest, maintains control over satellites crucial for critical societal functions and strategically important for the country.”