Telenor is Selling its Satellite Subsidiary to Space Norway
Telenor Group is selling its Telenor Satellite subsidiary to Space Norway, the company announced last week.
Both entities are owned by the Norwegian government. Telenor is Norway’s majority state-owned telecommunications company, and Space Norway is owned by the Norwegian Ministry of Trade, Industry and Fisheries and is a key part of the country’s activities in the space sector.
Telenor Satellite offers satellite broadcasting and data services. It serves millions of homes with TV services, and nearly 2,000 vessels and 600 land terminals with data connectivity.
Norwegian Minister of Trade and Industry Jan Christian Vestre said that this move will establish a major Norwegian satellite operator and strengthen Norway as a space nation.
“The acquisition ensures that Norway, in a time of increasing geopolitical unrest, maintains control over satellites crucial for critical societal functions and strategically important for the country,” Vestre commented.
The sales price is 2.36 billion Norwegian kroner ($220 million) on an enterprise value basis. The deal is subject to approval by the Norwegian Parliament and is expected to close in January 2024. Parliament will need to grant Space Norway the funds to finance the acquisition.
“Satellite-based capabilities are more important than ever. The combination of Space Norway’s partly governmental customers and Telenor Satellite’s commercial customer base will give the new company a strong platform to grow the business in both sectors. We are very excited to enter into this agreement and look forward to contributing to the long-term development of Telenor Satellite,” commented Space Norway CEO Dag Stølan.