Telia Company has completed the divestment of 49 percent of its tower business in Finland and Norway, to Brookfield and Alecta, as all regulatory approvals have been received.
Brookfield, investing through its core-infrastructure fund, together with Alecta acquired 49 percent of Telia’s tower businesses in Finland and Norway.
Transaction is in line with Telia’s strategy which includes partnering to strengthen the company’s digital infrastructure, while crystalizing asset value.
The transaction price corresponds to an enterprise value of EUR 1,524 million for 100 percent of the shares on a cash and debt free basis as of December 31, 2020.
The total cash proceeds paid to Telia on closing for the 49 percent equity stake equals EUR 767 million, which will enable further deleveraging.
On June 30, 2021, Telia announced the sale of 49 percent of its tower business in Finland and Norway to Brookfield and Alecta, at a price corresponding to an enterprise value for 100 percent of the shares of EUR 1,524 million on a cash and debt free basis. The price represents a FY 2020 EV/EBITDA multiple of 27x.
Allison Kirkby, Telia Company President & CEO, says: “The transaction clearly demonstrates the immediate value of, and our leadership in, digital infrastructure. Now we enter into a strategic partnership with Brookfield and Alecta to continue developing our digital infrastructure. Telia, Brookfield and Alecta have a long-term, industrial view on the role of tower infrastructure as a foundation for continued digitalization of the Nordic and Baltic regions.”