Norwegian telecommunications provider Telenor has announced an agreement to sell its Telenor Satellite subsidiary to Space Norway. The deal is valued at 2.36 billion Norwegian kroner ($218.1 million) and is part of Telenor’s strategy to divest non-core assets.

Telenor Satellite is a European satellite provider that offers broadcasting and data-communication services in the European, Middle East, and North African market. The sale of the subsidiary will provide Telenor Satellite Services with an industrial owner, Space Norway, that has a strategic focus on developing the business further. Space Norway is a state-owned company that specializes in developing and operating space-related infrastructure.

Space Norway’s activities range from small satellites in low earth orbits to large satellites and ground infrastructure. The company is wholly owned by the Norwegian government, and the transaction is subject to approval by Parliament. The closing of the deal is expected to take place in January 2024.

The sale of Telenor Satellite will enable Space Norway to take over the operations and continue investing in potential new satellites. The deal aligns with Telenor’s plans to streamline its portfolio and focus on its core assets and services.

By selling its non-core assets, Telenor aims to optimize its business and allocate resources to areas that offer greater growth potential. With the divestment of Telenor Satellite, Telenor can redirect its efforts and investments towards its core telecommunications services and technologies.

The agreement between Telenor and Space Norway marks a significant step towards the future development and expansion of satellite communication services in Europe, the Middle East, and North Africa. Space Norway’s expertise and strategic focus are expected to drive the growth and innovation of Telenor Satellite in the coming years.