Telenor has completed the sale of its assets in Central and Eastern Europe to PPF Group for €2.8 billion on an enterprise basis.
As previously reported by Broadband TV News, the transaction includes Telenor’s wholly-owned mobile operations in Hungary, Bulgaria, Montenegro and Serbia, as well as the technology service provider Telenor Common Operation. Telenor has now received €2.4 billion and will be paid the remaining €400 million in four instalments over four years.
In a statement, Telenor notes that the CEE operations have since Q1 2018 been treated as assets held for sale and discontinued operations in its financial reporting. The transaction will result in a profit after tax of around NOK2.2 billion (€230.8 million), to be booked in the third quarter 2018.
It adds that, as previously announced, it intends to distribute a special dividend of NOK4.40 per share following completion of the transaction. The special dividend will be resolved at the first scheduled board meeting in mid-September.
Broadband TV News notes that closing the transaction will be welcome news to the Czech Republic’s PPF Group, which last month failed to receive regulatory approval for its proposed acquisition of Nova Group in Bulgaria.
PPF Group points out that the acquisition of Telenor assets, which is being financed through a syndicated loan, is the biggest in the telecom sector in CEE since 2011.
