Norwegian telecoms operator Telenor has announced its agreement to sell its subsidiary, Telenor Satellite, to government-owned Space Norway for 2.36 billion Norwegian crowns ($217.37 million).

Telenor, one of Norway’s largest telecoms companies, made this decision as part of its strategy to simplify its operations and focus on core activities. The sale of Telenor Satellite will allow Telenor to streamline its business and allocate resources more efficiently.

Space Norway, a government-owned company responsible for the development of space infrastructure in the country, sees the acquisition as an opportunity to further strengthen Norway’s position in the space technology industry. This purchase aligns with Space Norway’s mission to ensure national and international connectivity through satellite communication infrastructure.

The 2.36 billion Norwegian crowns transaction is subject to regulatory approval and is expected to be finalized in the first quarter of 2018.

By divesting Telenor Satellite, Telenor aims to optimize its operations and enhance its competitive position in the rapidly evolving telecoms industry. The company has been undertaking various initiatives to adapt to changing market dynamics and emerging technologies.

With this sale, Telenor can refocus its efforts on its core telecoms business, which includes providing mobile and fixed-line telephony, broadband, and data services. This strategic move will allow Telenor to allocate its resources more effectively and concentrate on meeting the evolving needs of its customers.

The telecoms industry continues to undergo significant transformations with the ongoing development of technologies such as 5G and the Internet of Things. Telenor aims to position itself strategically to take advantage of these emerging trends and deliver innovative solutions to its customers.

Overall, the sale of Telenor Satellite to Space Norway allows both companies to pursue their respective objectives while contributing to the growth and advancement of Norway’s telecommunications and space technology sectors.