Telenor Group has reached an agreement with state-owned Space Norway to sell its satellite subsidiary for NOK2.4 billion ($221.7 million). This move is part of Telenor’s strategy to optimize its assets and focus on its core business.

As part of the deal, Telenor and Space Norway have also signed a letter of intent for future collaboration in areas such as business development projects and consulting services related to satellite capacity.

Telenor Satellite, the subsidiary being sold, offers broadcasting services and data communication in various markets across EMEA, including offshore environments. The sale is expected to allow Space Norway to leverage its existing public sector work and Telenor’s commercial customer base to enhance the growth of the business in both sectors.

The Head of Telenor Amp, the division housing the satellite unit, expressed confidence in the new owner’s ability to allocate the necessary financial resources for the subsidiary’s potential. Additionally, Telenor sees this sale as an opportunity to focus more on its core business.

The completion of the deal is pending approval from the Norwegian Parliament and is projected to be finalized by January 2024. This divestment is part of Telenor’s ongoing efforts to streamline its portfolio and concentrate on key areas. Last month, Telenor Amp concluded the sale of its stake in Working Group 2, while also implementing various changes in its Asian operations.

During its Q3 earnings call, Telenor CEO Sigve Brekke emphasized the company’s commitment to portfolio optimization in Asia and other divisions.