The proposal for a share buyback authority relates to the agreement to divest 30% of Telenor Fiber AS in a transaction as described in stock exchange notice of 7 October 2022. The transaction will generate proceeds of approximately NOK 10.8 billion to Telenor.
This transaction is in line with the strategy outlined on Telenor’s Capital Markets Day in September last year, about value crystallization in the infrastructure business. In addition to secure continued fibre roll out in Norway the Board of Directors intends to use parts of the proceeds for share buybacks.
The buyback will be conducted by way of purchase of shares in the market. In a subsequent general meeting after the buyback has been completed, the company will propose redemption of the shares acquired as well as a redemption of a proportionate number of shares held by the Norwegian government such that the Government’s ownership interest in the company remains unchanged. The authorisation has an upper limit of 3.4 % of the outstanding shares or NOK 4.3 billion, whichever is lowest, and will be valid until 31 December 2023.