OSLO, Norway, Oct. 30, 2002 (PRIMEZONE) -- Telenor (Nasdaq:TELN):
Telenor Plus and Glocalnet AB have signed an agreement on the sale of Telenordia Private customer bases in Sweden. Settlement will be in the form of shares in Glocalnet. The sale presupposes approval by the Swedish authorities and is expected to be final by the end of the year.
The sale of the Telenordia Private customer bases in Sweden is in keeping with the company's strategy of focusing its operations and reducing costs.
"The Swedish indirect telephony and Internet access market is fragmented, nonprofitable and ready for consolidation. Through the sale to Glocalnet we can contribute to the consolidation of the market and thereby create a viable operation," said Knut Haakon Nilsen, Chairman of the Board of Telenordia.
Telenordia Private has approximately 270,000 active subscribers consisting of 50,000 telephony customers, 200,000 dialup Internet access customers and 20,000 ADSL customers. Glocalnet has more than 130,000 active subscribers within telephony, mobile telephony and dial-up Internet access. As a result of the transaction Glocalnet will be the third largest telecommunications operator in the Swedish consumer market, with a good opportunity for profitability.
"To survive as an indirect operator in the Swedish consumer market reaching critical mass is vital. We think Glocalnet is the best suited operator for carrying through the consolidation of this market and securing direct investment earnings for the owners," said Knut Haakon Nilsen.
Glocalnet will issue new shares to Telenor Plus corresponding to an ownership share of 37,2 per cent. Telenor Plus will become the largest owner of Glocalnet. The current largest Glocalnet owner, Catella IT AB, will retain a share of approximately 31 per cent after the emission. Catella AB is owned by IKEA.
In connection with the sale of the customer base, Glocalnet is entering into a traffic agreement with Telenor Business Solutions AB on the purchase of network capacity for their fixedline telephony and Internet customers.