Bahnhof soars after Telenor to buy 57.5% stake
BUZZ-Bahnhof soars after Telenor to buy 57.5% stake ** Shares in Bahnhof BAHNb.ST soar about 18% after Norwegian telecom operator Telenor TEL.OL said it would buy 57.5% stake in the Swedish broadband provider worth $629 million
** The deal values Bahnhof at SEK 6.1 billion ($629.46 million) on an enterprise value basis, offering SEK 60 per Banhof share for the founders’ controlling stake and SEK 62 for Oresund’s stake
** Oresund ORES.ST said in a separate statement it agreed to sell its entire stake in Bahnhof for total of SEK 446 million
** Telenor to make a mandatory cash offer to all shareholders of Bahnhof when deal is completed
** Berenberg said the deal looks expensive at first, but expected synergies could make it much cheaper over time
** The acquisition would increase Telenor's share of Sweden's broadband market to about 27% from 15%, behind Telia TELIA.ST with about 44%-45% and ahead of Tele2 TEL2b.ST with around 22%, the brokerage said
** Telenor shares remain broadly flat following the deal announcement
($1 = 9.6909 Swedish crowns)
(Reporting by Marta Frackowiak)