Telenor has announced the sale of its Telenor Satellite subsidiary to Space Norway for NOK 2.36 billion (approx. US$217 million) on an enterprise value basis. The transaction is still subject to approval by the Norwegian Parliament and is expected to close in January 2024.
Telenor Satellite provides TV broadcasting and data communication services to maritime customers in Europe and the Middle East, connecting around 1,800 vessels. The subsidiary owns and operates three geostationary satellites and operates one more under a co-ownership arrangement.
The sale of Telenor Satellite is seen as the beginning of a new era for the company. Space Norway, being a wholly owned entity of the Norwegian Government, is expected to provide the necessary resources and expertise to realize its potential.
Telenor and Space Norway have also signed a letter of intent to establish a strategic partnership and explore joint business development initiatives, particularly in relation to additional satellite capacity.
The sale of Telenor Satellite is part of the Norwegian Government’s plan to establish a major satellite operator in the country. The acquisition will strengthen Norway’s position as a space nation and ensure that the country maintains control over strategically important satellites.
The Norwegian Minister of Trade and Industry, Jan Christian Vestre, stated that the government will propose providing capital to Space Norway to finance the acquisition of Telenor Satellite. This move is aimed at supporting the growth of the Norwegian space industry and maintaining control over critical societal functions in the face of increasing geopolitical unrest.
Overall, the sale of Telenor Satellite to Space Norway signifies a new chapter for the subsidiary and presents opportunities for both companies to collaborate and expand their presence in the satellite industry.