Posted on 1-Nov-2005 09:08.
Filed under: News
Vodafone has agreed to sell its 100% interest in Vodafone Sweden to Telenor, the pan-Nordic telecommunications operator.
Vodafone Sweden is being sold for an Enterprise Value of EUR 1,035 million (GBP 704 million). Net cash proceeds to Vodafone after assumption of net debt by Telenor will be approximately EUR 970 million (GBP 660 million).
"We have a good business in Sweden, but the particular industry structure and regulatory environment means that it makes more sense for our customers, our employees and our shareholders for a pan-Nordic player like Telenor to own the company. I'm sure that Telenor will be able to serve our customers well, particularly in the corporate sector, given its presence across the Nordic region" said Arun Sarin, Chief Executive of Vodafone,
Vodafone and Telenor have agreed the terms of a Partner Network Agreement in Sweden, allowing Vodafone Sweden and Vodafone customers to continue to benefit from Vodafone's global brand, products and services in Sweden.
As a result of the transaction, Vodafone will record an impairment charge of approximately GBP 0.5 billion in its interim results for the six months ended 30 September 2005.