Telenor Group has announced the sale of its subsidiary, Telenor Satellite, to Space Norway. Both companies are owned by the Norwegian government. Telenor is a state-owned telecommunications company, while Space Norway is a key player in the country’s space sector and is owned by the Ministry of Trade, Industry, and Fisheries.

Telenor Satellite provides satellite broadcasting and data services, serving millions of households with TV services and providing data connectivity to approximately 2,000 vessels and 600 land terminals. This transaction aims to establish a major Norwegian satellite operator and reinforce Norway’s position as a space nation.

Norwegian Minister of Trade and Industry, Jan Christian Vestre, believes that this move will enable Norway to retain control over crucial satellites and ensure their availability for critical societal functions in a time of increasing geopolitical unrest. The sales price for the deal is set at 2.36 billion Norwegian kroner ($220 million) on an enterprise value basis.

The transaction is subject to approval by the Norwegian Parliament and is expected to be finalized in January 2024. Space Norway will require financial support from the Parliament to finance the acquisition. The combination of Space Norway’s involvement with governmental customers and Telenor Satellite’s commercial customer base is expected to create a strong foundation for business growth in both sectors.

“We are very excited about this agreement and look forward to contributing to the long-term development of Telenor Satellite,” commented Dag Stølan, CEO of Space Norway. With satellite-based capabilities becoming increasingly crucial, this acquisition aims to enhance Norway’s presence in the space industry.