On October 25, 2006, Telenor entered into a definitive agreement with Apax Partners France for the sale of Telenor Satellite Services (TSS) to funds managed by Apax Partners for $400 million. Since 2002, Telenor has defined Telenor Satellite Services as non-core business. Apax Partners intends to pursue the development of the company in Norway and abroad.
Telenor Satellite Services offers communication solutions via satellite to land, air and sea. The transaction will not impact the services provided by TSS and business relations with customers will remain unchanged.
"Apax Partners is a very capable owner, and the sale of Telenor Satellite Services is made in accordance with Telenor's strategy to divest business operations that fall outside the scope of our core activities. We are pleased that Telenor Satellite Services will
now have an owner that is well-positioned to continue the development of the company," said Bjarne Aamodt, Chairman of Telenor Satellite Services and Senior (SNR.L)
Vice President in Telenor.
"We are delighted to make a further investment in satellite communication services by acquiring TSS. TSS is not only a major provider of mobile satellite services, but also a leading competitor in the high growth VSAT business segment, providing mission critical satellite communication services to demanding clients worldwide. Apax Partners will rely upon TSS' management and employees to pursue the development of the company in Norway and abroad, and to continously enhance its services to meet the needs of its customers," said Bertrand Pivin, Partner at Apax Partners in Paris.
The transaction is subject to approval from regulatory authorities. Given the current exchange rate for U.S. dollar, Telenor ASA (TELNY)
will be able to post a gain of approximately $213.5m from the sale.