REG-TeliaSonera AB Telia Company acquires Phonero in Norway <Origin Href="QuoteRef">TELIA.ST</Origin>

Telia ABAnnouncement

07/11/2016 07:00

      Telia Company acquires Phonero in Norway    
      Telia Company acquires Norwegian Phonero at an enterprise value of NOK       2,300 million on a cash and debt free basis. The transaction will       strengthen Telias position in the Norwegian enterprise segment and       expects to generate annual cost synergies of approximately NOK 400       million.    
    
      Phonero offers telecommunication services to small and medium sized       corporate customers as well as public companies in Norway. Phoneros       customer base comprises 25,000 invoiced enterprises with approximately       250,000 mobile subscriptions. The transaction will increase Telias       market share in the mobile enterprise segment from approximately 13       percent to 27 percent.    
      During the twelve-month period ending June 30, 2016, Phonero reported       net sales of NOK 1,104 million and an adjusted EBITDA of NOK 217       million. Telia expects to realize annual cost synergies of approximately       NOK 400 million, mainly from transferring traffic to its own network,       with limited effect in 2017 and full effect in 2018. Based on Phoneros       results in the last twelve-month period combined with expected       synergies, the purchase price corresponds to an EV/EBITDA multiple of       3.7x.    
      I am glad to welcome Phonero employees to Telia Company and Phonero       customers to Telia Norway. This is another important step in creating a       leading converged player in both consumer and enterprise across the       Nordics and Baltics, says Johan Dennelind, President and CEO of Telia       Company.    
      The transaction will strengthen Telias position as a true alternative       to the incumbent in the Norwegian B2B market. We have complementary       knowledge, expertise and service solutions that will help to create       added value for business customers. It will strengthen the competition       in the Norwegian B2B market and enables us to create more innovation,       better customer journeys and ensure a diversity of services for the       benefit of all customers, says Abraham Foss, CEO of Telia Companys       Norwegian operation.    
      Following a successful rebranding in early 2016, Telia continues to       develop and improve its services to the Norwegian customers. In the past       couple of years, Telia has made significant investments in 4G coverage       and capacity across Norway. Today, the network covers 98 percent of the       Norwegian population and Telia has this year received independent awards       for the best 4G network in the country.    
      The acquisition is subject to approval from the Norwegian competition       authorities and is expected be completed in the first quarter of 2017.    
      Telia Company invites to a press and analyst call today at 8.30 AM CET    
      Dial-in numbers:
+44 (0) 1452 555566, 08006940257
Access code:
14920770    
      You can also listen to the conference call afterwards until November 11,       2016.    
      Replay number:
+44 (0)1452550000    
      Access code:
14920770    
      For more information, please contact our press office +46 771 77 58 30,       visit our Newsroom(http://www.teliacompany.com/en/newsroom/)       or follow us on Twitter @Teliacompany (https://twitter.com/Teliacompany)    
      Forward-Looking Statements 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       Telia Company.    
      Were Telia Company, the New Generation Telco. Our 21,000 talented       colleagues serve millions of customers every day in one of the worlds       most connected regions. With a strong connectivity base, were the hub       in the digital ecosystem, empowering people, companies and societies to       stay in touch with everything that matters 24/7/365 - on their terms.       Headquartered in Stockholm, the heart of innovation and technology,       were set to change the industry and bring the world even closer for our       customers. Read more at www.teliacompany.com    
      This information was brought to you by Cision http://news.cision.com    
      Telia Company
press office, +46 771 77 58 30    
    
View source version on businesswire.com: http://www.businesswire.com/news/home/20161106005078/en/
      TeliaSonera AB