Telenor to sell Telenor Satellite to state-owned Space Norway

Source: Telenor

Norwegian telco Telenor has struck an agreement to sell its Telenor Satellite subsidiary to state-owned space outfit Space Norway.

Telenor said the sale price for the satellite division will be NOK2.36 billion on an enterprise value basis. As Space Norway is wholly owned by the Norwegian Government, the transaction is subject to approval by the Norwegian Parliament. Closing of the deal is expected in January 2024.

Telenor Satellite’s GEO satellites at 1° West cover the European, Middle East and North African market for broadcasting and data communication services. The company serves homes with TV services, and nearly 2,000 vessels and 600 land terminals with data connectivity. During the first three quarters of 2023, Telenor Satellite generated revenues of NOK707 million, EBITDA of NOK504 million and EBIT of NOK 284 million.

“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. 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, said Dan Ouchterlony, EVP and Head of Telenor Amp.

Dag H. Stølan, CEO at Space Norway, said: “Satellite-based capabilities are more important than ever. The combination of Space Norway’s partly governmental customers and Telenor Satellite’s commercial customer base will give the new company a strong platform to grow the business in both sectors. We are very excited to enter into this agreement and look forward to contributing to the long-term development of Telenor Satellite”.

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 and satellite consulting services.

The Norwegian Minister of Trade and Industry, Jan Christian Vestre, said: “The government will propose to the Parliament that Space Norway be provided with capital to finance the acquisition of Telenor Satellite. 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.”