GlobalConnect to acquire Telenor's Swedish fibre business

GlobalConnect to acquire Telenor's Swedish fibre business for SEK 3bn

24 November 2021 | Natalie Bannerman

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GlobalConnect Sweden has entered an agreement with Telenor Sweden, to acquire communications operator Open Universe and Telenor Sweden’s SDU fibre assets for SEK 3 billion ($330 million).

The deal includes approximately 200,000 connected homes on Open Universe’s platform and 14,000 connected homes in Telenor Sweden’s SDU fibre infrastructure. The transaction supports GlobalConnect’s ambitions to bridge digital divide and promote social inclusion across Sweden.

Once completed, GlobalConnect Sweden will continue to build on Open Universe’s platform and business model, by retaining the brand name and operating model. At the same time, GlobalConnect says it will maintain a strong collaboration with municipalities, property owners and city networks.

“We see market consolidation as a natural development in our industry, which will ultimately accelerate digitization and social inclusion across society," said Martin Lippert, CEO of GlobalConnect Group.

"We will therefore continue to explore possible acquisitions across all our markets, given that they fit our business model and can contribute to an even stronger offering to our customers. Acquiring Open Universe and valuable fibre assets from Telenor Sweden fits perfectly into our strategy."

In addition, thanks to additional resources and dedicated focus, GlobalConnect’s aims to deliver more, and improved fibre based broadband services to households across Sweden. The transaction will also position GlobalConnect Sweden as one of the leading communications operators in the country.

The newly acquired SDU fibre infrastructure will be incorporated into GlobalConnect Sweden’s fibre-to-the-Home (FTTH) operations, enabling the expansion and densification in the areas where the infrastructure is deployed. As such, GlobalConnect Sweden will be able to offer future proof fibre-based broadband to households that previously have not had the opportunity.

The transaction is expected to create a pre-tax gain on disposal of SEK 1.7bn ($186 million) and is due to close by Q1 of 2022, subject to regulatory approval.

In related news, earlier this month Charoen Pokphand Group has agreed to merge its Thai telecom units with Telenor in a deal worth around $8.6 billion.