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Telenor ASA — M&A Activity 2017
May 11, 2017
3773_rns_2017-05-11_0aac4369-d6cc-42bf-ad2d-5c394f5f2b9c.html
M&A Activity
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TELENOR MONETIZES ITS ONLINE CLASSIFIEDS INVESTMENT IN LATAM - STRENGTHENS OWNERSHIP IN ASIA
TELENOR MONETIZES ITS ONLINE CLASSIFIEDS INVESTMENT IN LATAM - STRENGTHENS OWNERSHIP IN ASIA
Telenor ASA has on 11 May 2017 entered into an agreement
with Schibsted ASA regarding its joint ventures within
online classifieds, whereby Telenor exits the Latin American
joint venture (SnT) and acquires Schibsted's stake in the
joint ventures in Malaysia, Vietnam, and Myanmar (701
Search). Net proceeds to Telenor from the transaction with
Schibsted will be USD 406 million (approx. NOK 3.4 billion).
In addition, Telenor has entered into an agreement with
Singapore Press Holdings to acquire their share in the
online classifieds sites in Malaysia, Vietnam and Myanmar
for USD 110 million (approx. NOK 0.9 billion).
Following these transactions, Telenor will own 100 % of the
leading online classifieds services Mudah (Malaysia), Chotot
(Vietnam), OneKyat (Myanmar) and ImSold (Malaysia and
Vietnam). Telenor, Schibsted, Naspers and Singapore Press
Holdings will remain partners in the online classifieds
assets in Thailand and Indonesia.
Telenor entered into agreements with Schibsted and Singapore
Press Holdings in 2013 to create joint ventures within
online classifieds in Latin America and Asia. In 2015, the
partners joined forces with Naspers to combine platforms in
several markets, including Brazil. Following this, Telenor's
ownership in the online classifieds joint ventures has been
25 % in Brazil, 50 % in Chile, 33.3 % in Malaysia and
Vietnam, 18.6 % in Thailand, and 11.3 % in Indonesia.
"Today's transactions show that we have been able to create
solid value from our online classifieds investments. We have
had a good co-operation with our partners since we teamed up
in 2013. However, as part of our efforts to simplify Telenor
Group's business portfolio and to focus on business
development in geographical areas of key importance, we now
wish to concentrate our online classifieds initiatives to
these fully owned assets in the Asian region," says Jørgen
C. Arentz Rostrup, Chief Financial Officer in Telenor Group.
The transactions are expected to close by end of June 2017.
In Telenor Group's financial reporting for the second
quarter 2017, a gain of NOK 3.5 billion will be booked
related to the disposals and an impairment of NOK 0.3
billion will be booked relating to the Asian assets. The
transactions will give a net positive cash contribution of
around NOK 2.5 billion in the second quarter of 2017.
Media Contact:
Atle Lessum,
mobile: (+47) 41 50 56 45,
Investor Relations Contacts:
Marianne Moe,
mobile: (+47) 91 61 76 31,
Helge Øien,
mobile: (+47) 91 31 92 42,