STOCKHOLM Dec 20 TeliaSonera said on
Thursday it would sell its Norewgian fixed broadband unit
NextGenTel to Telio Holding for 601 million Norwegian
crowns ($108 million) on a cash and debt free basis.
TeliaSonera said it would receive 531 million Norwegian
crowns in cash and 70 million in Telio shares on closing. It
will also take a goodwill writedown of 1.6 billion crowns
($242.27 million) in the fourth quarter as a result of the sale.
"Following a strategic review of the operations, TeliaSonera
has concluded that NextGenTel does not constitute the
appropriate platform to compete successfully in the Norwegian
broadband market," TeliaSonera said in a statement.
In a separate statement Telio said it would become Norway's
third largest provider of fixed broadband after the acquisition,
which requires regulatory approval.
For the first nine months of 2012, NextGenTel reported
revenues of 693 million Norwegian crowns and an EBITDA,
excluding non-recurring items, of 118 million.
($1 = 5.5557 Norwegian krones)
($1 = 6.6043 Swedish crowns)
(Reporting by Simon Johnson)