Telenor completes the disposal of its operations in Central and Eastern Europe

(Fornebu, 31 July 2018) On 21 March 2018, Telenor announced that it has entered into an agreement to sell its assets in Central and Eastern Europe to PPF Group for EUR 2.8 billion (around NOK 27 billion) on an enterprise value basis. Following regulatory approvals the transaction has today been completed.

The transaction includes Telenor’s wholly-owned mobile operations in Hungary, Bulgaria, Montenegro and Serbia, and the technology service provider Telenor Common Operation.

As previously announced, Telenor receives EUR 2.4 billion of the proceeds upon completion, while the remaining EUR 400 million will be paid in four instalments over four years.

The operations in Central and Eastern Europe have since the first quarter 2018 been treated as assets held for sale and discontinued operations in Telenor Group’s financial reporting. The transaction will result in a profit after tax of around NOK 2.2 billion, to be booked in the third quarter 2018.

As previously announced, Telenor intends to distribute a special dividend of NOK 4.40 per share following completion of the transaction. The special dividend will be resolved at the first scheduled board meeting in mid-September.