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Telia sells fixed broadband unit in Norway, to take goodwill hit
December 20, 2012 / 7:21 AM / 5 years ago

Telia sells fixed broadband unit in Norway, to take goodwill hit

STOCKHOLM, Dec 20 (Reuters) - 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)

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