Telenor Announces Sale of Telenor Satellite to Space Norway in NOK 2.36 bn Deal

Telenor, a prominent European telecommunications company, has entered an agreement to sell its subsidiary, Telenor Satellite, to Space Norway, a leading entity in the Norwegian space industry.
Telenor grows in AsiaThe acquisition, valued at NOK 2.36 billion on an enterprise basis, awaits approval from the Norwegian Parliament, given Space Norway’s status as a wholly government-owned entity. The transaction is slated for closure in January 2024.

Dan Ouchterlony, EVP and Head of Telenor Amp, expressed optimism about the transition, citing Space Norway’s competence and commitment to nurturing Telenor Satellite’s potential. Ouchterlony reflected on Telenor Satellite’s legacy of delivering premium broadcasting and data services via satellite for over two decades, anticipating an exciting new chapter under Space Norway’s ownership.

Dag H. Stolan, CEO of Space Norway, echoed this sentiment, emphasizing the significance of satellite-based capabilities in today’s landscape. Stolan highlighted the synergy between Space Norway’s governmental clienteles and Telenor Satellite’s commercial customer base, foreseeing robust growth opportunities across both sectors with the amalgamation of expertise and resources.

The deal not only marks a strategic shift in ownership but also signifies broader collaboration prospects. Telenor and Space Norway have outlined a letter of intent, laying the groundwork for potential joint initiatives in business development, particularly concerning additional satellite capacity and consultancy services.

Jan Christian Vestre, the Norwegian Minister of Trade and Industry, emphasized the government’s support, stating its proposal to allocate capital to facilitate Space Norway’s acquisition of Telenor Satellite. Vestre underscored the acquisition’s significance in fortifying Norway’s position as a burgeoning space nation, ensuring control over satellites crucial for societal functions and strategic interests amidst geopolitical tensions.

Telenor Satellite, a key European satellite operator catering to the EMEA market with broadcasting and data communication services, serves millions of households with TV services and provides connectivity to numerous vessels and land terminals. Its performance in the first three quarters of 2023 showcased robust revenues of NOK 707 million, EBITDA of NOK 504 million, and EBIT of NOK 284 million.

Space Norway, wholly owned by the Norwegian Ministry of Trade, Industry, and Fisheries, oversees strategic space capabilities, ranging from small satellites in Low Earth Orbits to large satellites and ground infrastructure, playing a pivotal role in Norway’s space sector endeavors.