Norwegian telecommunications company Telenor has decided to sell Telenor Satellite to Space Norway, a major player in Norway’s space industry. On an enterprise value basis, the sales price is NOK 2.36 billion ($217 million). As Space Norway is wholly owned by the Norwegian government, the transaction is subject to Norwegian Parliament approval. The transaction is expected to close in January of next year.
Telenor and Space Norway have already signed a letter of intent highlighting a strategic partnership and potential joint business development initiatives, specifically in the areas of additional satellite capacity and satellite consulting services.
Telenor Satellite is a European satellite operator that provides TV services to millions of homes as well as data connectivity to nearly 2,000 vessels and 600 land terminals. Telenor Satellite generated revenues of NOK 707 million, EBITDA of NOK 504 million, and EBIT of NOK 284 million in the first three quarters of 2023.
According to Norway’s Minister of Trade and Industry, Jan Christian Vestre, “The government will 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. At the same time, 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.”
