OSLO - In a significant move within the Nordic space industry, Telenor ASA (OTC:TELNY) has reached an agreement to divest its subsidiary Telenor Satellite to Space Norway. The deal, valued at 2.36 billion Norwegian kroner, is set to enhance Norway's strategic position in the satellite services sector.
The transaction, which requires parliamentary approval, is anticipated to be finalized by January 2024. Telenor Satellite, known for delivering high-quality television and data services across Europe, the Middle East, and Africa (EMEA), has been a key player in the market, serving millions of homes and numerous maritime and land terminals.
This acquisition aligns with the Norwegian government's strategy to strengthen its space industry capabilities. Jan Christian Vestre, the Norwegian Minister of Trade and Industry, has expressed his support for the deal. He sees it as a pivotal step in establishing a major Norwegian satellite operator and securing satellites that hold strategic importance, especially given the current geopolitical climate.
Space Norway, which is government-owned and specializes in managing strategic space assets from small to large satellites as well as ground infrastructure in Low Earth Orbits (LEO), will receive capital provision from Parliament for this purchase.
Telenor Satellite has reported robust financial performance in the first three quarters of 2023, with revenue of NOK 707 million, EBITDA of NOK 504 million, and EBIT of NOK 284 million. The acquisition by Space Norway is expected to stimulate further growth opportunities for Telenor Satellite by leveraging both governmental and commercial customer bases.
Dan Ouchterlony of Telenor Amp views this agreement as a promising development for Telenor Satellite under Space Norway's industrial ownership. Concurrently, Dag H. Stølan, CEO of Space Norway, anticipates that the merger will catalyze expansion in various sectors.
The two entities have also outlined a strategic partnership and potential joint business initiatives in a letter of intent. These initiatives could include satellite consulting services and are projected to drive growth by combining their respective strengths in serving government and commercial clients.
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