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TELIA - Telia AB News Story

SEK37.25 0.4  1.1%

Last Trade - 5:00pm

Sector
Telecoms
Size
Large Cap
Market Cap £12.80bn
Enterprise Value £21.17bn
Revenue £7.52bn
Position in Universe 55th / 1828

UPDATE 1-Telia to buy TDC's Norway business in $2.6 bln deal

Tue 17th July, 2018 7:44am
(Adds background, detail)
    STOCKHOLM, July 17 (Reuters) - Swedish telecom operator
Telia Company  TELIA.ST  said on Tuesday it was buying operator
TDC's Norwegian business for 21 billion Norwegian crowns ($2.60
billion) in a deal that would boost its broadband and TV
offering.
    Telia said the acquisition would make the company a "strong
challenger" in mobile, TV and broadband. Norway is the home
market of Nordic rival Telenor  TEL.OL .
    Telia, which is in the process of completing an exit from
its Eurasian businesses, had said previously it was interested
in acquisitions in its Nordic core markets and was looking to
expand its TV content  urn:newsml:reuters.com:*:nL8N1QG3NY 
    It has also highlighted that broadband and cable-TV assets
in Norway, where it mainly sells mobile services, were a top
priority for acquisitions. urn:newsml:reuters.com:*:nL5N1T134F      
    "We have a history of successful acquisitions in Norway and
I am fully confident that this transaction will be no
exception," Telia CEO Johan Dennelind said in a statement.
    TDC's Norwegian business includes GET, a fiber and TV
provider with a total of 518,000 households and
businesses connected to its fiber-based network, as well as a
business-to-business operation, TDC Norway.
    GET also has more than 1 million private and business
customers who use its TV and broadband services on a daily
basis, Telia said.
    "It will create a leading convergent operator
for both consumers and enterprises in Norway which can compete
in the market with a lot of attractive and new products and
services," Dennelind said.
    Telia said its on-going share buy-back programme and
dividend policy would remain intact following the deal. 
    The company has also been eyeing other big acquisitions,
saying in May it was in talks to buy Swedish media group
Bonnier's broadcasting business.  urn:newsml:reuters.com:*:nL5N1SW2N1         
    In 2017 GET and TDC Norway reported revenues of 4 billion
Norwegian crowns and EBITDA (earnings before interest, taxes,
depreciation and amortization) of 1.7 billion crowns.    
    Telia said it expected the deal to generate 600 million
Norwegian crowns of synergies by 2021 while integration costs
were seen at about 200 million annually during 2019 and 2020.   
    The deal is subject to approval from relevant authorities
and is expected to be completed in the second half of 2018,
Telia said.
        
    ($1 = 8.0859 Norwegian crowns)

 (Reporting by Johannes Hellstrom; Editing by Kirsten Donovan)
 ((johannes.hellstrom@thomsonreuters.com; +4687001008; Reuters
Messaging: johannes.hellstrom.reuters.com@reuters.net))
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