Norwegian Telecom company, Telenor ASA, has announced an agreement to sell its unit, Telenor Satellite, to Space Norway, which is owned by the Norwegian Government. The sale is valued at 2.36 billion Norwegian kroner on an enterprise value basis.

Telenor Satellite is a European satellite operator that provides broadcasting and data communication services in the European, Middle East, and North African (EMEA) market.

The transaction is still pending approval from the Norwegian Parliament, but it is expected to close in January 2024.

The Norwegian Minister of Trade and Industry, Jan Christian Vestre, has stated that the government will propose to the Parliament to provide Space Norway with the necessary capital to finance the acquisition of Telenor Satellite.

Telenor and Space Norway have also signed a letter of intent for a strategic partnership and potential joint business development initiatives.

Dan Ouchterlony, EVP and Head of Telenor Amp, expressed confidence in the sale, stating that Space Norway has the right expertise and financial resources to realize the full potential of Telenor Satellite.

Dag Stolan, CEO at Space Norway, believes that the combination of their partly governmental customers and Telenor Satellite’s commercial customer base will provide a strong platform for business growth in both sectors.

Overall, this sale of Telenor Satellite to Space Norway represents a significant step forward in the telecom industry and opens up new opportunities for both companies.