Telenor to sell salellite business to Space Norway for $217.1 million

State-majority-owned Telenor has agreed to sell its subsidiary Telenor Satellite to state-owned Space Norway for NOK 2.36 billion ($217.1m). To finance this acquisition, Norwegian Minister of Trade and Industry, Jan Christian Vestre said the government will propose to the Parliament that Space Norway be provided with capital. He said, “The acquisition will contribute to the establishment of a major Norwegian satellite operator, which, together with a growing Norwegian space industry, can strengthen Norway as a space nation.”

Dan Ouchterlony, EVP and Head of Telenor Amp, which manages Telenor's portfolio of companies said, “For more than 20 years, we have served our customers with premium, high-quality broadcasting and data services via satellite. Now the time has come for a new era for Telenor Satellite. With Space Norway, Telenor Satellite will have an industrial owner who has the right competence and who will prioritize the required financial resources to realize the company’s potential.”

Dag H. Stølan, CEO of Space Norway, added, “Satellite-based capabilities are more important than ever. The combination of Space Norway’s partly governmental customers and Telenor Satellite’s commercial customer base will give the new company a strong platform to grow the business in both sectors. We are very excited to enter into this agreement and look forward to contributing to the long-term development of Telenor Satellite”.