Telia Will Offload its Danish Operations For $920m

The Swedish telecommunications company Telia Company has agreed to transfer its Danish operations to the energy and telecommunications corporation Norlys for $919.85 million. Telia explains that its strategy is to concentrate on markets where it can obtain and defend a market-leading position. The sale will allow Telia to reduce its debt and comes a few months after the company warned that its fourth-quarter results would be negatively impacted by several non-cash impairments aggregating close to $2 billion. Its roots in Denmark date back to 1995, when Telia Stofa and TeliaSonera merged to form Telia. It is the third largest mobile service provider in Denmark, after TDC and Telenor.

The operator announced earlier this year that it would eliminate up to 1,500 positions by 2023, citing the "challenging macro environment." Niels Duedahl, the chief executive officer of Norlys, stated that by combining Telia's mobile network with its fiber business, Norlys would be able to provide a full-service solution in Denmark, creating significant growth opportunities. A robust mobile division will strengthen its position as the leading challenger in the Danish market and its presence in the digital and green value chains.

As for the acquirer, Norlys, the Scandinavian firm, is headquartered in Oslo, Norway, and specializes in electricity and Internet service provision. Norlys possesses TV & Internet provider Stofa and energy firm Netselskabet N1. The transaction is anticipated to close in the first period of 2024, pending regulatory approvals. Telia operates outside of its native market in Sweden in Finland, Estonia, Norway, Latvia, and Lithuania.