Telenor Group agreed to acquire a controlling stake in Swedish fixed provider Bahnhof in a deal valuing the company at SEK6.1 billion ($629.9 million), a buy which would trigger a mandatory offer to purchase all remaining shares.
Subject to regulatory approvals, Telenor is set to purchase the 50.8% of Bahnhof owned directly and indirectly by founders Jon Karlung and Andreas Norman, alongside a 6.7% stake from Oresund Investment.
Telenor stated the move would provide the platform to boost its position in Sweden, the Nordic market it believes provides the greatest opportunity for growth.
The operator’s CEO Benedicte Schilbred Fasmer explained “Sweden is the largest Nordic market by population and a key strategic priority for us. This transaction gives us the breadth and scale to compete more effectively and create long-term value for customers and shareholders”.
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Bahnhof has 500,000 consumer customers and 15,000 enterprise, with assets including propriety network infrastructure, and access to open networks and five co-location data centres.
Following the acquisition, Telenor anticipates its consumer fixed market share in Sweden will go from 15% to around 27%, making it the country’s second-largest provider behind Telia. It plans to retain the Bahnhof brand.
Telenor intends to make its offer to remaining Bahnhof shareholders within four weeks of completion of its deals with Oresund Investment and the two founders.
Acquisition of the controlling stake is expected be completed within four-to-eight months.
Source: https://www.mobileworldlive.com/telenor/telenor-boosts-broadband-with-bahnhof-buy/
