Telenor ASA has reached an agreement to sell its subsidiary, Telenor Satellite, to Space Norway in a deal valued at 2.36 billion Norwegian kroner. The transaction, which is subject to parliamentary approval, is expected to be completed by January 2024.

Telenor Satellite is known for providing television and data services across Europe, the Middle East, and Africa (EMEA), and has been a prominent player in the market, serving millions of homes and various maritime and land terminals.

This divestment aligns with the Norwegian government’s objective to strengthen its position in the space industry. Jan Christian Vestre, the Norwegian Minister of Trade and Industry, expresses support for the deal, recognizing its significance in establishing a major Norwegian satellite operator and securing strategically important satellites.

Space Norway, a government-owned company specializing in managing strategic space assets, including satellites and ground infrastructure, will receive capital provision from Parliament for the purchase.

Telenor Satellite has reported strong financial performance in the first three quarters of 2023, with revenue of NOK 707 million, EBITDA of NOK 504 million, and EBIT of NOK 284 million. The acquisition by Space Norway is expected to unlock further growth opportunities for Telenor Satellite by leveraging both governmental and commercial customer bases.

The agreement between Telenor Satellite and Space Norway also includes a strategic partnership and potential joint business initiatives outlined in a letter of intent. These initiatives may involve satellite consulting services and aim to drive growth by combining their strengths in serving government and commercial clients.

Overall, the divestment of Telenor Satellite to Space Norway marks a significant development in the Nordic space industry and contributes to Norway’s strategic positioning in the satellite services sector.