Telenor sells satellite business to Space Norway
Telenor Group today announced it has agreed to sell its satellite business to Space Norway for a fee of NOK 2.36 billion, equivalent to $217 million.
Satellite operator Telenor Satellite covers the European, Middle East and North African market with broadcasting and data communication services.
The company serves millions of homes with TV services, and nearly 2,000 vessels and 600 land terminals with data connectivity.
During the first three quarters of 2023, Telenor Satellite generated revenues of NOK 707m, EBITDA of NOK 504m and EBIT of NOK 284m.
Space Norway is wholly owned by the Norwegian Government, so the transaction is subject to approval by the Norwegian Parliament.
Telenor and Space Norway have already signed a letter of intent outlining a strategic partnership and possible joint business development initiatives, in particular regarding additional satellite capacity and satellite consulting services.
Space Norway manages and develops strategic space capabilities. The company is 100% owned by the Norwegian Ministry of Trade, Industry and Fisheries and represents a key part of the Norwegian Government’s activities and assets in the space sector. Space Norway’s activities range from small satellites in Low Earth Orbits to large satellites and ground infrastructure.
The Norwegian Minister of Trade and Industry, Jan Christian Vestre said the government would propose to the Parliament that Space Norway be provided with capital to finance the acquisition of Telenor Satellite.
“The acquisition will contribute to the establishment of a major Norwegian satellite operator, which, together with a growing Norwegian space industry, can strengthen Norway as a space nation,” Vestre said.
Vestre also said he believes the acquisition would help Norway maintain control over satellites crucial for critical societal functions and strategically important for the country, which he said was particularly important during a time the time of political unrest the world finds itself in.
“Satellite-based capabilities are more important than ever,” agreed Dag H. Stølan, CEO at Space Norway.
Stølan believes the combination of Space Norway’s 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,” Stølan said.
The transaction is expected to close in January 2024.