Telenor Group is to acquire 54% of Finnish telecom operator DNA for a total of €1.5 billion.
The company says the move will give it a strong position across fixed and mobile, and strengthen its position in the Nordic region.
Telenor has entered into separate agreements with DNA’s two largest shareholders, Finda Telecoms Oy and PHP Holding Oy, which hold 28.3% and 25.8% of the shares in the company, respectively.
Subject to regulatory approvals, Telenor expects the transaction to be completed during the third quarter of 2019 and then plans to bid for the remaining shares in DNA.
Helsinki-based DNA is the third-largest mobile operator in Finland, with 2.9 million subscribers and 28% market share. Over the past three years, DNA has increased its mobile service revenues by 9.3% per year. In addition, DNA is the second-largest fixed broadband provider and the largest cable TV provider in Finland.
In 2018, DNA reported revenues of €912 million, EBITDA of €285 million and operating cash flow of €147 million.
Telenor says it sees “solid potential” for DNA to continue to grow and develop, from offering more advanced products and upselling existing customers to strengthening its position in the business segment and leveraging Telenor’s global scale.
“The transaction is expected to generate material synergies within procurement, roaming and best practice sharing,” a statement said.
Sigve Brekke, Chief Executive, Telenor Group, commented “I am very pleased to announce today’s transaction and our entry into Finland, the fastest growing mobile market in Europe. DNA is an exciting addition to Telenor Group, and a natural complement to our existing operations in the Nordic region.”