Norway-based telecoms giant Telenor Group has announced that it has entered into separate agreements with the two largest shareholders in DNA Finland to acquire a total of 54% of the Finnish multi-service operator’s shares. In a press release regarding the development, Telenor Group said it plans to acquire the 28.3% and 25.8% stakes in DNA held by Finda Telecoms and PHP Holding, respectively, for EUR20.9 (USD23.5) per share in cash, for a total of EUR1.5 billion.
With Telenor Group saying that the deal will give it ‘a strong position across fixed and mobile in an attractive and growing telecom market, and further strengthens its position in the Nordic region’, it noted that the transaction is subject to certain conditions, including ‘the approval by the general meetings of the seller entities and required regulatory approvals’.
Telenor Group expects the transaction to be completed during the third quarter of 2019, and upon its completion it plans to trigger a mandatory public tender offer for the remaining outstanding shares in DNA. Looking ahead to this, Telenor Group has confirmed that the cash consideration per share to be offered in the mandatory tender offer will be EUR20.90. Subject to the outcome of the mandatory tender offer, Telenor Group’s intention is to keep DNA’s listing on the Nasdaq Helsinki stock exchange.
Commenting, Telenor Group Chief Executive Sigve Brekke was cited as saying: ‘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. Not only are we strengthening our footprint in the Nordic region, we are also gaining a solid position across fixed and mobile in the Finnish market and making room for further value creation.’