TeliaSonera Sells Norway Broadband Arm to Telio for $108 Million
TeliaSonera AB (TLSN) sold its Norwegian broadband unit NextGenTel to Telio Holding ASA (TELIO) for 601 million kroner ($108 million) in the Swedish phone carrier’s third asset divestiture in less than a month.
TeliaSonera will be paid 531 million Norwegian kroner in cash and 70 million kroner in Telio shares, the Stockholm-based company said in a statement today. It will book a charge of 1.6 billion Swedish kronor ($244 million) in the fourth quarter as a result of a writedown of goodwill, it said.
“After careful evaluation of our options for NextGenTel, we have decided to prioritize other parts of our business where we believe we can achieve higher returns,” said Malin Frenning, head of TeliaSonera’s broadband services unit. “TeliaSonera will continue to serve the customers in Norway through its mobile brands NetCom and Chess.”
The sale of NextGenTel follows TeliaSonera’s initial public offering of its Kazakh wireless unit Kcell this month, which raised $525 million, and the $1.7 billion IPO of OAO MegaFon, another of its holdings, last month. TeliaSonera, Sweden’s biggest phone company, is selling stakes in emerging-markets ventures to gain funds, while retaining holdings in them to benefit from growth that’s faster than in its home markets.
To contact the reporter on this story: Niklas Magnusson in Stockholm at email@example.com