Wikborg Rein assists Telenor with the sale of a minority stake in its Norwegian passive fibre infrastructure

We have assisted the Telenor group with the sale of a minority stake of Telenor Norge AS' passive fibre infrastructure for a purchase price of NOK 10.8 billion to a consortium of KKR and Oslo Pensjonsforsikring

In brief, the transaction will be carried out in two steps, whereas the passive fibre infrastructure will first be demerged into Telenor Fiber AS, and then 30% of the shares of Telenor Fiber AS will be sold to the consortium, based on a total equity valuation of NOK 36.1 billion. Telenor Networks Holding AS will hold the remaining 70% majority stake. In addition to showcasing the value of Telenor's infrastructure to investors, the transaction will release capital to support Telenor's future investments in new fibre infrastructure in Norway.

To accelerate investments into the infrastructure, KKR and Oslo Pensjonsforsikring have been brought on board. KKR is a world-renowned global investment firm with significant infrastructure investment experience, and Oslo Pensjonsforsikring is a life insurance company owned by Oslo municipality representing Norwegian capital.

The transaction was announced prior to trading 7 October 2022, and has already attracted media attention:

The transaction is subject to completion of the demerger. The transaction is expected to be completed early 2023.

This has been a complex transaction, but with excellent assistance from various lawyers in Wikborg Rein, we were able to help Telenor deliver a great result. The Wikborg Rein core team comprised of Madeleine Østenstad, Alexander Bernhard Wintervold, Cecilie Andersen Haadem, Hanne Camilla Zimmer, Anders Myklebust, Caroline Landsværk and Ole Henrik Wille as responsible partner.