The Latest: Nordic operator Telia has entered an agreement to sell 100% of its operations and network assets in Denmark to domestic energy and telecoms provider Norlys. The operator is valued at DKK6.25bn (USD926.1mn), which corresponds with an 8.9x EBITDA multiple. The transaction is expected to close by Q124 at the latest. Implications: Telia’s move responds to the growing pressures that Nordic operators are facing, particularly in light of a higher opex environment as inflationary pressures weigh on margins and capex. Under our view, the Telia-Norlys merger will not have a material effect on the competitive levels of the market. Given that Norlys is a pure-fibre player, the operation maintains competitive dynamics in the mobile segment while creating a stronger player in the highly competitive fixed segment, which benefits from the presence of two of the four MNOs - TDC and Telenor - and a myriad of well-funded, fixed-only players, including Norlys’ Stofa or Hiper.
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