Telenor to buy majority in DNA for EUR 1.5 billion
Norwegian telecommunications company Telenor has announced the 1.5 billion-euro purchase of a 54 per cent stake in Finnish telecom operator DNA.
DNA is the third largest mobile operator in Finland with a 28 per cent market share and 2.9 million customers. Its revenue hit 912 million euros and operating cash flow 147 million euros in 2018.
As the fastest growing mobile market in Europe, Finland is a potentially lucrative market for Telenor. DNA reported a 34 per cent increase in mobile data traffic among its customers in 2018. The 20.8 gigabytes of mobile data used by its customers is the world’s second largest amount of data per SIM card.
“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,” explained Sigve Brekke, chief executive of Telenor Group.
The transaction is conditional on approvals from regulatory authorities and the general meetings of the sellers. Telenor expects the deal to be concluded in the third quarter of 2019. The transaction will be followed by a mandatory offer for the rest of the shares that will value DNA at 2.78 billion euros, according to Reuters.
DNA also ranks as one of the top brands in Finland. It recently claimed the most attractive employer recognition and was named the most responsible company in its industry in the latest Sustainable Brand Index.
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