Telia acquires Netcom ASA in Norway
- 2000-06-23 22:00 UTC
Today, Telia acquired more than 51 percent of the Norwegian mobile operator Netcom ASA. The company was sold by SEC, Orkla and KLP Forsikring, among others. Telia intendes to make a cash bid corresponding to NOK 470 per share to purchase the remaining shares outstanding in Netcom ASA.
The total value of the transaction is SEK 22,852 million.
The acquisition of Netcom ASA strengthens Telia's competitiveness in the Nordic region. After the acquisition, Telia's share of customers in the Nordic mobile market will be about 28 percent.
"The acquisition of Netcom ASA strengthens Telia's position as the leader in the Nordic region, the most developed mobile telephone market in the world," commented Jan-Åke Kark, Telia's Chief Executive Officer, in a statement.
By acquiring Netcom Telia is taking an important step in its ongoing program to implement its strategy in the mobile telecommunications field. After the purchase of Netcom, which is part of the rapid consolidation of the mobile market in the region, Telia is by far the largest operator in the Nordic mobile market today with close to four million of the region's 14 million mobile customers and the only mobile operator with an active presence in all Nordic countries.
Netcom ASA is the second largest mobile operator in Norway with approximately 750,000 customers and a market share of 28.6 percent at the end of the first quarter of 2000.
"Netcom is an ideal partner for Telia and has a good market position, a strong brand and operations on a high technological level. The acquisition strengthens Telia's competitiveness in the Nordic region and provides synergies in production, the development of services and investments. The purchase of Netcom also consolidates Telia's position as the most attractive cooperation partner for suppliers such as content service providers in the Nordic mobile market," said Jan-Åke Kark.
A condition for the acquisition is approval by relevant authourities.
Carnegie is Telia's advisor on the acquisition.
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