Norlys set to be national telco competitor with Telia Denmark acquisition

Danish energy and telecoms company Norlys has signed a preliminary agreement with Telia Company to buy the Danish part of Telia’s business. The purchase price is expected to amount to DKK6.25 billion (€838 million), financed with funds from last year’s sale of a minority share of Norlys’ fibre business.

Norlys, which owns the former Stofa cable operator network as well as its own fibre networks, aims to use the acquisition to create a competitor in mobile and fixed telecoms with national scale.

Telia Denmark’s business includes approximately 1.5 million customer relationships and a 50% ownership of the TT network, which is Denmark’s largest mobile network.

Norlys, which has worked purposefully to enter the mobile market, said the purchase of Telia Denmark is the culmination of a process that has lasted almost three years.

The agreement between Norlys and Telia Company is subject to satisfactory due diligence and approval from Norlys’ board of representatives as well as competition approval in Denmark.

Norlys is hopeful that the acquisition can be completed in the first quarter of next year,

“A mobile business gives Norlys completely new relevance because it brings us closer to the customers. Danes naturally expect the best coverage, regardless of where they are, and therefore it is crucial that we can offer a comprehensive solution. At the same time, we are future-proofing our infrastructure with both of the winning technologies 5G and fibre,” said Niels Duedahl, CEO of Norlys.

“When the deal is final, a new national challenger will be created in Denmark, and our Danish business will have a long-term owner that is widely present in both telecoms and energy. The sale is recognition of the impressive turnaround our Danish colleagues have created in the past 18 months but is also a natural consequence of our strategy to focus on markets where we can create a leading position,” said Allison Kirkby, Group CEO of Telia Company.

Norlys is in part financing the acquisition from proceeds of the sale of 35% of the group’s fibre network division to a French/Dutch investor consortium.

“The fibre sale and the mobile acquisition are part of an overall process that is effectively self-financing and which creates a completely new strategic platform for Norlys. We have gained a strong partner in our fibre business, but still have control, and now we are adding mobile as a decisive new business leg,” said Duedahl.